Washington Report 360 | November 4, 2022

Key Highlights

• TPRM. SEC proposed rules that would establish oversight requirements for investment advisers that retain service providers to perform “covered functions.” (See KPMG Regulatory Alert, here)
• Cybersecurity and Ransomware. Treasury said information sharing with financial institutions helped thwart cyberattack; FinCEN financial trend analysis report finds nearly $1.2 billion ransomware-related filings in 2021; White House Fact Sheet on ransomware summit.
• Accountability/Trust. SEC Chair speech outlining “effective administration” of the federal securities laws focuses on importance of “positions of trust”
• Liquidity Risks. SEC proposed enhancements to the liquidity framework of open-end funds to “better prepare for stressed conditions.”

Industry news headlines

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• U.S. Treasury thwarted attack by Russian hacker group last month, official says (Reuters)
• Federal Reserve Hikes by 0.75 Point, Signals Slower Increases but Ultimately Higher Rates (WSJ)
• SEC enforcement actions nab record $6.4 billion (Pensions & Investments)
• Gensler’s Warning to Market Players: SEC’s Crackdown Is Just Getting Started (Bloomberg)
• Finra Seeks to Stretch Remote Inspections thru 2023 (Financial Adviser)
• Bank CEOs expect returning to the office will become the norm (American Banker)
• Competitive pressures on small lenders ease as refinances diminish (American Banker)
• Card issuers are expanding technological operations and hiring sizable tech teams (American Banker)
• Regional banks say they can handle any looming credit hiccups  (American Banker)
• IRS has opened 20 Russia sanctions-related criminal probes  (WSJ)
• Pushback from U.S. banks softens GFANZ climate rules (American Banker)