Insight

Washington Report 360 | February 1, 2019

In this issue....

 

Key Highlights

  • The Chair of the Senate Banking Committee outlined the Committee agenda for the 116th Congress, including a focus on consumer data protection.
  • The CFTC Chair intends to publish proposals for a new risk-based cross-border framework.
  • Five federal agencies finalized a joint rule implementing private flood insurance provisions for loans in areas with special flood insurance hazards.

Financial services legislative and regulatory news

The Senate Banking Committee:

  • Chair outlined the Committee agenda for the 116th Congress, including building a “record for legislative action on the collection, use, and protection of personally identifiable information by financial regulators and financial companies.”
  • Ranking Member requested the Federal Reserve make use of the Countercyclical Capital Buffer as part of its efforts to “strengthen the resilience of the financial system.”

The House passed:

  • H.R. 56, to study how terrorists exploit digital currencies.
  • H.R. 502, to study how virtual currencies facilitate illegal trafficking.
  • H.R. 624, to study and revise corporate insider trading provisions.

The CFTC Chair:

  • Stated the agency would publish “various new cross-border rule proposals” to create a new risk-based framework; the proposals would replace the CFTC’s 2013 cross-border guidance, 2016 rule proposals, and certain no-action letters.
  • Indicated the agency will seek an extension to the comment period for its proposed rule on swap execution facilities and request for comment on “post-trade name give up.”

The federal banking agencies, Farm Credit Administration, and the NCUA finalized a joint rule implementing the private flood insurance provisions of the Bigger-Waters Flood Insurance Reform Act. (ABA Journal)

Financial services policy news

FINRA:

  • Proposed a rule change to extend until February 2020 the limited application of FINRA rules to security-based swaps.
  • Announced a new self-reporting initiative regarding share class recommendations on Section 529 savings plans.
  • Released a Working Paper finding that institution orders handled by brokers with high affiliated Alternative Trade System routing are associated with lower fill rates and higher execution costs.

The federal banking agencies released their 2018 Shared National Credit Review finding increased risks associated with leveraged lending.

The CFPB released:

  • A Complaints Snapshot showing credit reporting, debt collection, and mortgages as the top consumer complaints over the past 24 months.
  • The Annual Report of the Office of Servicemember Affairs, highlighting top servicemember complaints and emerging trends.

Ginnie Mae is increasing oversight of nonbank mortgage lenders and initiating stress tests of business partners. (WSJ)