Washington Report 360 | October 7, 2022

Supervision and Regulation. Climate Risk. Enforcement Actions.

Key Highlights

Supervision and Regulation. OCC Bank Supervision Operating Plan named 13 “key areas of heightened focus for supervisory strategies,” including operational resiliency, fair lending, CRA, and climate-related risks. FRB outlined upcoming areas for large bank supervision and regulation, including stress testing, capital, M&A, and resolutions.
Climate Risk. FDIC speech noting potential impact of climate change on the effectiveness of past risk mitigation strategies, no matter the institution size; New FSOC Climate-related Financial Risk Advisory Committee.
Enforcement Actions. SEC – anti-touting violations; CFTC - registration failures and price manipulation; FINRA - Best Execution and Regulation SHO violations; CFPB – remittance transfer and EFTA violations; DOJ – SCRA violations

Financial services regulatory news
SEC	Enforcement action against individual for violation of the anti-touting provision by failing to disclose consideration received for the promotion
CFTC	Enforcement action against a digital assets derivatives platform for unlawfully offering futures transactions, failure to register as a FCM, and price manipulation
FINRA	Regulatory notice/alert on trend in fraudulent transfers of accounts through ACATS Enforcement action against a: Broker dealer for Best Execution violations Securities company for Regulation SHO violations and supervisory failures
Interagency	FFIEC 2022 Cybersecurity Resource Guide for Financial Institutions FRB and FDIC announcement of forthcoming resolution plan guidance for non-GSIB large banks
FRB	Final rule on Debit Card Interchange Fees and Routing Speeches on: Technology’s Impact on the Post-Pandemic Economy Large Bank Supervision and Regulation Economic outlook focusing on the housing market NY FRB: Staff Report: The Financial Stability Implications of Digital Assets Blog: Eviction Expectations in the Post-Pandemic Housing Market Blog: Measuring the Ampleness of Reserves
FDIC	Speech on “The Financial Risks of Climate Change”
OCC	Bank Supervision Operating Plan for FY 2023
CFPB	Blog on mortgage borrowers’ ability to challenge inaccurate appraisals Enforcement action against money transfer company alleging violations of the Remittance Transfer Rule and EFTA
Treasury	FSOC: Report on Digital Asset Financial Stability Risks and Regulation; related OCC, SEC, and CFPB statements New Climate-related Financial Risk Advisory Committee (CFRAC) OFAC sanctions compliance guidance for instant payment systems FIO (Federal Insurance Office): Annual Report on the Insurance Industry RFI on federal insurance response to catastrophic cyber incidents Announcement of inaugural members of the Treasury Advisory Committee on Racial Equity
DOJ	Enforcement action against auto finance company for SCRA violations.
NY DFS	Relaunch of Consumer Protection Advisory council
BIS	BCBS: Evaluation of buffer usability and cyclicality in the Basel regulatory framework (second report on evaluation of Basel III reforms) FSI paper on Big tech regulation: in search of a new framework Report on Basel III implementation progress

Financial services policy news
White House	Fact sheets: Executive Order to Implement the EU/U.S. Data Privacy Framework Administration-Wide Efforts to Protect Student Loan Borrowers from Scammers New Public and Private-Sector Efforts to Advance Racial Equity