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Regpulse Newsletter December 14, 2020 – January 8, 2021 Financial Services RegPulse Newsletter December 14, 2020 – January 8, 2021 Recent developments › COVID-19 economic stimulus bill, known CARES 2.0, is signed into law › Federal Reserve formally joins the Network of Central Banks and Supervisors for Greening the Financial System › Federal banking agencies announce a proposed rule that would require prompt notification of any “computer-security incident” › OCC clarifies that federally chartered banks and thrifts may participate in public blockchain networks and use stablecoins for payment activities › SEC requests comment regarding the custody of digital asset securities by special purpose Regulatory Roundup | Deloitte Center for Regulatory Strategy, Americas 1 broker-dealers Introduction The Deloitte Center for Regulatory Strategy (DCRS) is a source of critical insight and advice, designed to help clients anticipate change and respond with confidence to the strategic and aggregate impact of national and international regulatory policy. The RegPulse Newsletter is a bi-weekly distribution that features the latest regulatory news and issues that are impacting the financial services and fintech industries. For a deeper analysis and discussion of regulatory developments, make sure to check out our RegPulse blog series, which are a collection of blogs that are contributed by our powerful team of former regulators, industry specialists, and trusted business advisors. US regulatory developments Congress Derivatives Banking & Capital Markets Investment Management Consumer Protection Insurance BSA/AML Fintech EMEA regulatory developments Featured DCRS content Key: Cross-sector The development covers multiple financial services sub-sectors or other industries. FBO The development pertains to or affects foreign banking organizations (FBOs). Blog/POV The development has been covered or is currently being analyzed by our team to be produced into either a RegPulse blog or broader point of view (POV). For more information, please refer to the featured DCRS content section. Regulatory Roundup | Deloitte Center for Regulatory Strategy, Americas 2 US regulatory developments Congress House Members send letter to OCC on its NPR on Congress passes COVID-19 stimulus bill fair access to financial services On December 22, 2020, Congress passed the On December 30, 2020, House Financial Services Coronavirus Response and Relief Supplemental Chairwoman Maxine Waters (D-CA) and 22 other Appropriations Act, a $900 billion COVID-19 relief Committee Democrats sent a letter to Office of the package, as part of the Consolidated Appropriations Act Comptroller of the Currency’s (OCC) Brian Brooks urging of 2021. The bill was signed into law on December 29, the OCC to withdraw a Notice of Proposed Rulemaking 2020. regarding "fair access to financial services.“ Source: US House of Representative Committee on Rules Source: US House of Representatives Committee on Financial Services Banking & Capital Markets SBA and Treasury release interim final rule on PPP Christopher Waller swears in as a member of the Loans Under Economic Aid Act Board of Governors of the Federal Reserve System On January 7, 2021, The Small Business Administrator On December 18, 2020, Christopher J. Waller swore an (SBA) and the US Department of the Treasury released oath of office virtually as a member of the Board of an Interim Final Rule that governs new Paycheck Governors of the Federal Reserve System. Protection Program (PPP) loans made under the Source: Federal Reserve Board Economic Aid Act. The Interim Final Rule is effective upon publication in the Federal Register and comments are due Agencies announces proposal for requirement of 30 days after publication in the Federal Register. computer security incident notification Source: Small Business Administrator On December 18, 2020, the FRB, Federal Deposit OCC proposes rule regarding permissible bank Insurance Corporation (FDIC) and OCC announced a premises proposal that would require supervised banking organizations to promptly notify their primary On January 4, 2021, the OCC proposed a rulemaking to federal regulator in the event of a computer security codify permissibility standards for real estate used as incidents that could result in a banking organization's national bank or federal savings association premises. inability to deliver services to a material portion of its customer base, jeopardize the viability of key operations Source: Office of the Comptroller of the Currency of a banking organization, or impact the stability of the financial sector. Federal Reserve Board extends termination date of Main Street Lending Program facilities Source: Federal Reserve Board On December 29, 2020, the Federal Reserve Board (FRB) Governor Lael Brainard delivers speech on climate extended of the termination date of the Main Street change-related challenges to the financial system Lending Program facilities to January 8, 2021 to allow for more time to process and fund loans that were submitted On December 18, 2020, the FRB Governor Lael Brainard to the Main Street lender portal on or before December delivered a speech entitled "Strengthening the Financial 14, 2020. System to Meet the Challenge of Climate Change." Source: Federal Reserve Board Source: Federal Reserve Board Fed issues final rule amending Regulation D and Governor Lael Brainard delivers speech on invites public comment on the proposed modernizing and strengthening of CRA regulations amendments On December 17, 2020, the FRB Governor Lael Brainard On December 22, 2020, the FRB (or Fed) issued a notice delivered a speech on modernizing and strengthening of of proposed rulemaking on Regulation D (Reserve CRA regulations at the Consumer Bankers Association. Requirements of Depository Institutions) and requested comments on proposed amendments. Source: Federal Reserve Board Source: Federal Reserve Board Regulatory Roundup | Deloitte Center for Regulatory Strategy, Americas 3 US regulatory developments (continued) Banking & Capital Markets (continued) Investment Management FRB announces it has formally joined the NGFS SEC announces Roisman as its Acting Chairman On December 15, 2020, the FRB announced that it has On December 28, 2020, the Securities and Exchange formally joined the Network of Central Banks and Commission (SEC) announced that the President Supervisors for Greening the Financial System, or NGFS, designated Elad L. Roisman as Acting Chairman. which supports the exchange of ideas, research, and best practices on the development of environment and Source: Securities and Exchange Commission climate risk management for the financial sector. SEC proposes amendments to Rule 144 and Form Source: Federal Reserve Board 144 FDIC approves rule to ensure safety and On December 22, 2020, the SEC proposed an soundness of industrial banks amendment to Rule 144 to revise the holding period determination for securities acquired upon the On December 15, 2020, the FDIC approved a final rule conversion or exchange of certain market-adjustable that will require certain conditions and commitments for securities. The SEC also voted to update and simplify the each deposit insurance application approval, non- Form 144 filing requirements. objection to a change in control notice, and merger application approval that would result in an insured Source: Securities and Exchange Commission industrial bank becoming a subsidiary of a company that is not subject to consolidated supervision by the FRB. SEC issues updates regarding substituted compliance requirements Source: Federal Deposit Insurance Corporation On December 22, 2020, the SEC issued following actions Federal banking agencies announce availability of to advance implementation of security-based swap 2019 small business, small farm, and community regulation: 1. A final substituted compliance order in development lending data response to an application by Germany’s Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin); 2. A notice of On December 14, 2020, three federal banking agency application and proposed substituted compliance order in members of the Federal Financial Institutions response to an application by France’s Autorité des Examination Council (FFIEC) with Community Marchés Financiers (AMF) and Autorité de Contrôle Reinvestment Act (CRA) responsibilities announced the Prudential et de Résolution (ACPR). availability of data on small business, small farm, and community development lending reported by certain Source: Securities and Exchange Commission commercial banks and savings associations, pursuant to the CRA. SEC announces the creation of the Security-Based Swaps Joint Venture Source: Financial Stability Board On December 18, 2020, the SEC announced Security- Based Swaps Joint Venture, a venture among several Comment deadline approaches on CFPB, FDIC, SEC divisions and offices that will be responsible for NCUA and OCC proposed rule on interagency coordinating functions related to the regulation of statement clarifying the role of supervisory security-based swaps and oversight of certain entities guidance that will be required to register with the SEC. On November 5, 2020, the Consumer Financial Source: Securities and Exchange Commission Protection Bureau (CFPB), FDIC, FRB, National Credit Union Administration (NCUA) and OCC published in the BSA/AML Federal Register a proposed rule that would codify interagency statement clarifying the role of supervisory FinCEN invites comments on proposed change that guidance issued by the agencies on September 11, require casinos to develop
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