Washington Report 360 | July 15, 2022

SEC amendments to proxy rules; OCC and CFPB consent orders related to UDAAP/UDAP

Key Highlights

FRB. The Federal Reserve Board of Governors now has all seven seats filled, following the Senate confirmation of Michael Barr as vice chair of supervision; he is expected to focus on areas of safety and soundness regulation such as capital, stress testing, and merger activity.
Industry News. Financial services companies reported second quarter earnings with some indicating a fall in profits, increases to loan reserves, and efforts to buffer capital by suspending buybacks and/or dividends.
SEC. Final amendments to the rules governing proxy voting advice; Proposed amendments to Shareholder Proposal Rule (see KPMG Regulatory Alert, here)
OCC and CFPB. Issued separate hundred-million-plus-dollar consent orders (including consumer redress) against a large bank; allegations included UDAAP/UDAP related to fraud model flags, account freezes, and claims and complaints management.

Financial services regulatory news
SEC	Final amendments to the rules governing proxy voting advice Proposed amendments to the Shareholder Proposal Rule Commissioner statement on single-stock ETFs
CFTC	Addition of 34 unregistered foreign entities to RED list
FINRA	National Study on U.S. Adults’ Financial Capability
Interagency	Joint statement on the risk-based approach to assessing customer relationships and conducting customer due diligence (FRB, FDIC, OCC, and FinCen) Extended deadline for U.S. GSIB resolution plan feedback (FRB and FDIC) List of distressed or underserved nonmetropolitan middle-income geographies (FRB,FDIC, OCC)
FRB	Speeches on crypto-assets and decentralized finance; monetary policy in a world of conflicting data Report on cybersecurity and financial system resilience NY FRB report on underserved firms and access to the Paycheck Protection Program NY FRB conference on LIBOR transition; ARRC guide for legacy LIBOR cash products
OCC	Financial inclusion symposium to mark the second anniversary of Project REACh Speech on the importance of financial health for consumers Issued a consent order addressing UDAP related to flags, freezes, and claims/complaints management; Separate but related CFPB consent order
FDIC	Financial institution letter on consolidated reports of condition and income for Q2 2022
CFPB	Advisory on protecting privacy when compiling personal data Blog on promoting competition in financial markets
Treasury	Fact sheet on international engagement on digital assets Request for comment on risks and opportunities presented by digital assets Call for large position reports OFAC reminder to file the 2022 Annual Report of Blocked Property OFAC Ukraine-/Russia-Related Web General Licenses 2 and 10 OFAC Russia-related general licenses, FAQs, fact sheet on sanctions and agricultural trade
NY DFS	New guidance prohibiting unfair and deceptive overdraft and NSF fees
HUD	Expansion of mortgage eligibility for borrowers previously affected by COVID-19
FSB	Reports: Progress addressing financial risks from climate change Options to promote broader adoption of the Legal Entity Identifier (LEI) in cross-border payments Exit strategies to support equitable recovery and address effects from COVID-19 scarring in the financial sector Proposed KPIs for measuring progress toward G20 cross-border payments targets Statement on international regulation of crypto-asset activities Letter to G20 on growing challenges to financial stability
BIS	Reports: Big Tech Interdependencies – A Key Policy Blind Spot Cross-border payments framework Options for access to and interoperability of CBDCs for cross-border payments BCBS publication: high-level considerations on proportionality CPMI and IOSCO final guidance on stablecoin arrangements

Financial services policy news
Senate	Confirmed Michael S. Barr as a member of the Federal Reserve Board of Governors and as vice chair of supervision
House	Hearing on Examining the Unified Proposed Rule to Modernize the Community Reinvestment Act