- Securities fraud. The DOJ and SEC issued a multi-billion-dollar complex options trading enforcement settlement against an investment adviser and three individuals; charges include securities fraud, investment adviser fraud, and obstruction.
- Crypto and digital assets. Market volatility in a stablecoin fund and various cryptocurrencies led to Treasury, SEC, and CFTC statements on the need for further regulation; Department of Commerce published an RFI for developing a framework on the competitiveness of digital asset technologies.
- False Claims/UDAAP. In part due to rising use in the digital asset space, the FDIC issued a final rule implementing statutory prohibitions against false or misleading representations of deposit insurance or misuse of the FDIC name or logo. OCC and CFPB issued supporting statements. CFPB issued a Consumer Financial Protection Circular to other agencies that enforce consumer financial protection laws noting that the misrepresentation of FDIC insurance may be considered a "deceptive" practice under UDAAP.
Financial services regulatory and policy news
- Discussed the importance of risk management
- Issued final rule on false advertising, misrepresentations about Insured Status, and misuse of the FDIC’s name or logo; related statements from FDIC, OCC, CFPB
- Published financial institution letters on the amendments to guidelines for appeals of material supervisory determinations, Small Entity Compliance Guide related to simplification of Deposit Insurance Rules, and Minority Depository Institution (MDI) DesignationsCFPB:
- Published a report on mortgage servicing COVID-19 response metrics
- Issued a Consumer Financial Protection Circular on prohibiting false claims about FDIC insurance
- Issued a blog on promoting consistent enforcement of consumer financial protections
- Issued an interpretive rule clarifying states’ ability to enforce federal consumer financial protection laws
- Issued a speech on investor protections in a digital age
- Held the FINRA Annual Conference on May 17th
- Published an RFI on a framework for enhancing U.S. economic competitiveness in digital asset technologies
- Announced that the addition of the Massachusetts Division of Insurance (MA) membership to the International Association of Insurance Supervisors
Industry news headlines
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California lawmakers ask FDIC to cut off high-cost consumer lenders (American banker)
Bipartisan crypto plan would create oversight body for fintech (American banker)
Could stablecoin regulation re-risk the banking system? (American Banker)