Insight

Washington Report 360 | September 17, 2021

Interagency guidance expected for climate risk; SEC outlined agenda items; CSBS Money Transmission Modernization Act; FTC resolutions for conduct investigation

Amy S. Matsuo

Amy S. Matsuo

ESG and Regulatory Insights Lead, KPMG LLP

Key Highlights

  • OCC Acting Comptroller stated that the agency is working with “interagency peers” to develop guidance for large banks that focuses on effective climate risk management.
  • SEC highlighted future actions related to investor protection and regulatory frameworks in the areas of crypto assets, digital engagement practices, and ESG-related disclosures as part of Congressional testimony. (See KPMG Regulatory Alert here)
  • CSBS released the Money Transmission Modernization Act for adoption by individual states with the goal of establishing a single set of nationwide standards for state-regulated financial services entities; “money transmission” includes stored value, sales of payment instruments, and transmission of fiat and virtual currency.
  • FTC approved resolutions that authorize staff to investigate and initiate enforcement activity in eight specific areas of consumer protection, including service members and veterans; children; and algorithmic bias. (See KPMG Regulatory Alert here).

Financial services regulatory and policy news

Banking

  • OCC:
  • Spoke about safeguarding trust in banking; covering inequality, digitalization, climate change, and “complacency”
  • Issued a new "Problem Bank Supervision" booklet of the Comptroller's Handbook
  • Reported Q2 2021 trading revenue of U.S. banks and savings associations, down 22.9 percent from Q1
  • FDIC:
  • Launched a new Mission-Driven Bank Fund, a capital investment vehicle developed to support insured MDIs and CDFIs
  • Announced the winners of a ‘tech sprint’ for new technologies and techniques to meet the needs of unbanked consumers

Capital Markets

  • CFTC:
  • Spoke about the derivatives market, carbon emissions, and climate change

Other

Industry news headlines

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