Key Highlights
- Cybersecurity. The SEC proposed cybersecurity disclosure reporting rules for public companies in i) risk management, ii) strategy, iii) governance, and iv) incident reporting. (See KPMG Regulatory Alert)
- Sanctions. FinCEN issued an alert advising all financial institutions to be vigilant against potential efforts to evade sanctions and other U.S.-imposed restrictions, and detailing examples of red flags to help identify potential sanctions evasion activity. (See KPMG Regulatory Alert)
- Digital Assets. The Administration issued an executive order on digital assets, directing several agencies (including SEC, CFTC, FRB, OCC, FDIC, CFPB, Treasury, and FSOC) to produce reports on the protection of consumers, investors, and businesses, financial stability, national security, and U.S. adoption of a central bank digital currency (CBDC). All of these reports are due within 180 days.
- Climate risk. SEC will meet on March 21 to consider proposed climate-related disclosures. FRB, OCC, and FDIC are working to finalize principles on climate change risk management and develop more detailed guidance.
- Community Reinvestment Act. FRB, OCC, and FDIC are expected to issue a proposed rule on CRA by the end of March; the proposal includes climate-related disaster recovery and bank partnerships with nonbank lenders.
Financial services regulatory and policy news
Banking
- OCC:
- Spoke on:
- Issued an updated Large Bank Supervision booklet of the Comptroller’s Handbook, clarifying information about core assessments
- CFPB:
- Issued a statement on the Administration’s executive order on digital assets
- Published blogs on Worker’s financial experiences, highlighting surveillance technology and sale of personal data, and financial issues facing rural communities
Capital Markets
- SEC:
- Proposed rules on cybersecurity risk management, strategy, governance, and incident disclosure by public companies; associated statements here, here, and here
- Scheduled an open meeting on March 21 to consider climate-risk disclosures
- CFTC:
- Issued a statement on the Administration’s executive order on digital assets
- FINRA:
- Issued a notice regarding sales practices for complex products and options, and soliciting comment on effective practices and rule enhancements
Other
- Administration:
- Issued an executive order on ensuring responsible development of digital assets; related fact sheet and press briefing here and here; associated statement here
- Treasury:
- Issued a statement on the Administration’s executive order on digital assets
- Launched a consumer education effort on digital assets
- OFAC issued guidance on import restrictions imposed on Russian oil, gas, and coal
- FinCEN provided guidance on red flags for potential sanctions evasion attempts
- U.S. Congress:
- Senate:
- Passed S. 3600, Strengthening American Cybersecurity Act of 2022. The bill has now moved to the House of Representatives
- Passed the Adjustable Interest Rate (LIBOR) Act as part of the Consolidated Appropriations Act, 2022. The bill, which would facilitate transition of legacy contracts, has moved to the President for signature.
- Senate:
- Government Accountability Office (GAO):
- Published a report on regulators’ effectiveness in increasing access to banking services
- BIS:
- Released an analysis highlighting the need for continued work on central counterparty financial resources
Insurance
- NAIC:
- Published a consumer insight report on cybersecurity risk management and identity theft
Industry news headlines
(Some links may require subscription)
- SEC Chief Gensler Looking into Developing Label, Disclosure Rules for ESG Investing Products (ESG Today)
- US watchdog urges banks to uphold cross-border trust (Risk.net)
- Regulators expect to release CRA revamp as soon as this month (American Banker)
- Bipartisan bill would require firms to report cyberhacks within 72 hours (American Banker)
- Should the U.S. Issue a Digital Dollar, Which Could Compete With Crypto Assets? (WSJ)
- Domestic Extremists a ‘Challenge’ to Financial Institutions, Treasury says (WSJ)
- Ransomware Attackers Begin to Eye Midmarket Acquisition Targets (WSJ)
- Goodbye Libor? House spending bill offers a patch for $16 trillion debt backlog mired by the rate (MarketWatch)
