financial services regpulse newsletter · 2020-05-29 · regulatory roundup | deloitte center for...
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Regulatory Roundup | Deloitte Center for Regulatory Strategy, Americas 1
RegPulse NewsletterFinancial Services
May 9 – May 29, 2020
Recent developments
FRB publishes Supervision and Regulation report and Financial Stability report FRB & Treasury deliver first CARES Act Report to Congress; Congressional Oversight Committee
releases CARES Act report FRBBOS releases updated Main Street Lending Facility FAQs SBA releases PPP loan forgiveness documentation OCC finalizes Community Reinvestment Act SEC committee recommends ESG reporting
Regulatory Roundup | Deloitte Center for Regulatory Strategy, Americas 2
IntroductionThe Deloitte Center for Regulatory Strategy (DCRS) is a source of critical insight and advice, designed to helpclients anticipate change and respond with confidence to the strategic and aggregate impact of national and internationalregulatory policy. The RegPulse Newsletter is a bi-weekly distribution that features the latest regulatory news andissues 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, andtrusted business advisors.
Key:
The development covers multiple financial services sub-sectors or other industries.
The development pertains to or affects foreign banking organizations (FBOs).
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.
US regulatory developments
EMEA regulatory developments
Congress
Banking & capital markets
Consumer protection
BSA/AML
Derivatives
Investment management
Insurance
Fintech
Cross-sector
FBO
Blog/POV
APAC regulatory developments
Featured DCRS content
Regulatory Roundup | Deloitte Center for Regulatory Strategy, Americas 3
US regulatory developments
Congress
Senate Democrats send letter to Kathleen Kraninger and Mark Calabria on Borrower Protection Program
On May 27, 2020, Senate Banking Committee Ranking Member Sherrod Brown (D-OH) and 7 other Senate Democrats sent a letter to CPFB Director Kathleen Kraninger and FHFA Director Mark Calabria requesting additional information on the Borrower Protection Program.
Source: US Senate
Senate Banking Committee holds Quarterly CARES Act Hearing
On May 19, 2020, the Senate Banking Committee held a remote hearing entitled "The Quarterly CARES Act Report to Congress.“
• Hearing Information• Committee Statements: Mike Crapo (R-ID); Sherrod
Brown (D-OH)• Witness Statements: Steven Mnuchin; Jerome Powell
Source: US Senate Committee on Banking, Housing, and Urban Affairs
In Letter to Fed and Treasury, Waters presses for Emergency Lending Programs not to support Predatory Lenders
On May 18, 2020, Congresswoman Maxine Waters (D-CA), Chairwoman of the House Committee on Financial Services, sent a letter to Jerome Powell, Chair of the Board of Governors of the Federal Reserve System, and Steven Mnuchin, Secretary of the U.S. Department of the Treasury, following up on conversations to ensure that the Federal Reserve and Treasury programs and facilities to respond to the COVID-19 crisis do not support predatory lenders.
Source: US House Committee on Financial Services
Congressional Oversight Commission releases CARES Act Report
On May 18, 2020, the Congressional Oversight Commission released their first report, entitled "Questions About the CARES Act’s $500 Billion Emergency Economic Stabilization Funds."
Source: US Senate
Elizabeth Warren sends Comment Letter to CFTC Subcommittee on Market Risk Regulation
On May 15, 2020, Senator Elizabeth Warren (D-MA) sent a comment letter to the CFTC's Climate Related Market Risk Subcommittee on requirements for market regulations to incorporate physical and transition risks associated with the climate crisis.
Source: US Senate
Committee holds Bipartisan Virtual Roundtable with Prudential Regulators
On May 14, 2020, the Consumer Protection and Financial Institutions Subcommittee held a virtual roundtable with prudential regulators entitled, “Update from Prudential Regulators.”
Source: US House Committee on Financial Services
Democrats send letter to Steven Mnuchin and Jerome Powell on limiting M&A Activity for Large Corporations Receiving CARES Act Funding
On May 13, 2020, Senator Elizabeth Warren (D-MA), Senator Amy Klobuchar (D-MN) and House Antitrust Subcommittee Chairman David Cicilline (D-RI) sent a letter to Treasury Secretary Steven Mnuchin and Federal Reserve Board Chair Jerome Powell on limiting large corporations that are receiving CARES Act funding from engaging in mergers and acquisitions.
Source: US Senate
Banking Committee advances Miller, Wade Nominations
On May 12, 2020, U.S. Senator Mike Crap, Chairman of the U.S. Senate Banking Committee, held an executive session to vote on the nominations: The Honorable Brian D. Miller, of Virginia, to be Special Inspector General for Pandemic Recovery, U.S. Department of the Treasury; and Mrs. Dana T. Wade, of the District of Columbia, to be Assistant Secretary, U.S. Department of Housing and Urban Development. Mr. Miller was advanced 14-11, and Mrs. Wade was advanced 15-10.
Regulatory Roundup | Deloitte Center for Regulatory Strategy, Americas 4
Banking & capital markets
Tenth Circuit upholds FDIC ownership of tax refunds in cases of failed banks
On May 27, 2020, U.S. Court of Appeals for the Tenth Circuit issued a favorable decision holding tax refunds generated by a failed bank belonged to the Federal Deposit Insurance Corporation (FDIC) as receiver rather than the bankruptcy trustee for the failed bank's parent company.
Source: Federal Deposit Insurance Corporation
FDIC extends comment period on proposal to ensure safety and soundness of industrial banks
On May 27, 2020, the FDIC extended the public comment period for its proposed rule regarding industrial banks and industrial loan companies (industrial banks) by 30 days to July 1, 2020.
Source: Federal Deposit Insurance Corporation
FDIC extends comment period on proposal to Ensure safety and soundness of industrial banks
On May 27, 2020, Federal Deposit Insurance Corporation (FDIC) extended the public comment period for its proposed rule regarding industrial banks and industrial loan companies (industrial banks) by 30 days to July 1, 2020.
Source: Federal Deposit Insurance Corporation
SBA releases Report on PPP
On May 26, 2020, the SBA released a second round report on the Paycheck Protection Program, with data on approvals through May 23, 2020.
Source: US Small Business Administration
NY Fed publishes Blog Posts on Government Support During COVID-19 Pandemic and PMCCF and SMCCF
On May, 26, 2020, the Federal Reserve Bank of New York published Liberty Street Economics blog posts entitled "Consumers Increasingly Expect Additional Government Support amid COVID-19 Pandemic" and "The Primary and Secondary Market Corporate Credit Facilities."
Source: Federal Reserve Bank of New York
FINRA's Transformation of Member Supervision —Examination and Risk Monitoring Program
On May 26, 2020, FINRA staff discuss the migration of examination by business model including the firm grouping structure, how the Risk Monitoring and Examination teams coordinate, and what firms can expect going forward.
Source: Financial Industry Regulatory Authority
Director, Shareholder, and Member Meetings: Interim Final Rule
On May 26, 2020, OCC issued an interim final rule that amends 12 CFR 5 and 7 to clarify that national banks and federal savings associations (FSAs) may permit telephonic and electronic participation at all board of directors, shareholder, and, as applicable, member meetings. This interim final rule is effective on May 28, 2020. Comments on the interim final rule must be received no later than July 13, 2020.
Source: Office of the Comptroller of the Currency
Committee holds Bipartisan Virtual Roundtable on Impact of COVID-19 on Capital Markets
On May 26, 2020, the Subcommittee on Investor Protection, Entrepreneurship, and Capital Markets held a virtual roundtable with capital market experts entitled, “Examining the Impacts of the COVID-19 Pandemic on U.S. Capital Markets."
Source: US House Committee on Financial Services
US regulatory developments (continued)
Regulatory Roundup | Deloitte Center for Regulatory Strategy, Americas 5
Banking & capital markets (continued)
Comptroller of the Currency Joseph Otting to step down, Brian P. Brooks to become Acting Comptroller of the Currency on May 29, 2020
On May 21, 2020, the Comptroller of the Currency Joseph M. Otting today announced he will step down from office on May 29, 2020, and pursuant to 12 USC 4 as designated by Secretary of the Treasury Steven T. Mnuchin, First Deputy and Chief Operating Officer Brian P. Brooks will become Acting Comptroller of the Currency.
Source: Office of the Comptroller of the Currency
New York Fed announces the First Subscription Date of June 17 for the Term Asset-Backed Securities Loan Facility and releases additional information
On May 20, 2020, the Federal Reserve Bank of New York announced the first loan subscription date for the Term Asset-Backed Securities Loan Facility (TALF) and released an expanded set of Frequently Asked Questions (FAQs) and other documents pertaining to the facility’s operations.
Source: Federal Reserve Bank of New York
Federal Agencies issue Principles for Offering Responsible Small-Dollar Loans
On May 20, 2020, the federal financial institution regulatory agencies issued principles for offering small-dollar loans in a responsible manner to meet financial institutions customers' short-term credit needs.
Source: Federal Reserve Board
Comptroller of the Currency highlights Final Rule strengthening and modernizing the community reinvestment act
On May 20, 2020, the OCC took an important step forward to strengthen and modernize the regulatory framework implementing the CRA. By finalizing the rule to improve the regulatory framework, we will make CRA work better for everyone and are encouraging banks and savings associations to lend, invest, and provide more services in the communities they serve, including low-and moderate-income neighborhoods across our country.
Source: Office of the Comptroller of the Currency
Eric Rosengren speaks on Main Street Lending Program and Other Fed Actions
On May 19, 2020, the Federal Reserve Bank of Boston President and CEO Eric Rosengren delivered a speech entitled "The Main Street Lending Program and Other Federal Reserve Actions" delivered to the New England Council in Boston, Massachusetts.
Source: Federal Reserve Bank of Boston
New York Fed releases Notice of Interest for the Municipal Liquidity Facility
On May 15, 2020, the Federal Reserve Bank of New York today released a Notice of Interest (NOI) for Eligible Issuers to express interest in selling notes to the special purpose vehicle (SPV) Municipal Liquidity Facility LLC. The New York Fed also announced that the SPV, Municipal Liquidity Facility LLC, designated BLX Group LLC (BLX) as its administrative agent for the execution phase of the MLF.
Source: Federal Reserve Bank of New York
Fed releases First Periodic Report to Congress on Lending Facilities
On May 15, 2020, the Federal Reserve Board released its periodic report filed with Congress on the various Fed-established lending facilities established in response to COVID-19.
Source: Federal Reserve Board
Fed releases Financial Stability Report
On May 15, 2020, the Federal Reserve Board released its Financial Stability Report.
Source: Federal Reserve Board
US regulatory developments (continued)
Regulatory Roundup | Deloitte Center for Regulatory Strategy, Americas 6
Banking & capital markets (continued)
Agencies announce temporary change to Supplementary Leverage Ratio
On May 15, 2020, the federal bank regulatory agencies announced temporary changes to their supplementary leverage ratio rule. The temporary modifications will provide flexibility to certain depository institutions to expand their balance sheets in order to provide credit to households and businesses in light of the challenges arising from the coronavirus response.
Source: Federal Reserve Board
Green Swan 2 - Climate change and Covid-19: reflections on efficiency versus resilience
On May 14, 2020, BIS released a paper which elaborates on the green swan - Central banking and financial stability in the age of climate change, an e-book published by the BIS and the Banque de France..
Source: Bank for International Settlements
CFPB outlines responsibilities of Financial Firms during Pandemic
On May 13, 2020, CFPB released a statement and FAQs outlining the responsibility of certain financial firms during the pandemic. In the statement, the Bureau outlines the billing error responsibilities of credit card issuers and other open-end non-home secured creditors during the COVID-19 pandemic.
Source: Consumer Financial Protection Bureau
Statement from Secretary Steven T. Mnuchin on the Start of Secondary Market Corporate Credit Facility Purchases
On May 12, 2020, U.S. Treasury Secretary Steven T. Mnuchin issued the following statement on the start of certain Secondary Market Corporate Credit Facility purchases: “Since announcing the Primary and Secondary Market Corporate Credit Facilities (PMCCF and SMCCF) on March 23, we have seen a dramatic improvement in liquidity and credit market function.”
Source: US Department of the Treasury
Fed published updates to the Term Sheet for TALF
On May 12, 2020, the Federal Reserve Board (FRB) published additional information regarding borrower and collateral eligibility criteria for the Term Asset-Backed Securities Loan Facility (TALF).
Source: Federal Reserve Board
Comptroller of the Currency discusses efforts to support the Federal Banking System’s response to COVID-19
On May 12, 2020, the Office of the Comptroller of the Currency discussed the agency's efforts to support the
safe, sound, and fair operation of the federal banking system and promote its ability to meet the needs of its customers during the national public health emergency created by COVID-19.
Source: Office of the Comptroller of the Currency
New York Fed announces start of certain SMCCF purchases on May 12
On May 11, 2020, the Federal Reserve Bank of New York announced that the Secondary Market Corporate Credit Facility (SMCCF) will begin purchases of exchange-traded funds (ETFs) on May 12. The Primary Market Corporate Credit Facility (PMCCF) is expected to become operational and the SMCCF is expected to begin purchasing eligible corporate bonds in the near future, as detailed previously.
Source: Federal Reserve Bank of New York
Fed published updates to the Term Sheet for MLF
On May 11, 2020, the Federal Reserve Board (FRB) published updates to the term sheet for the Municipal Liquidity Facility (MLF) to provide pricing and other information.
Source: Federal Reserve Board
US regulatory developments (continued)
Regulatory Roundup | Deloitte Center for Regulatory Strategy, Americas 7
Banking & capital markets (continued)
Federal Financial Regulatory Agencies issue Interagency Policy Statement on Allowances for Credit Losses and Interagency Guidance on Credit Risk Review Systems
On May 8, 2020, FDIC and three other federal financial regulatory agencies approved a policy statement on allowances for credit losses. The statement will promote consistency in the interpretation and application of the Financial Accounting Standards Board's credit losses accounting standard, which introduces the current expected credit losses (CECL) methodology.The interagency policy statement describes the measurement of expected credit losses using the CECL methodology and updates concepts and practices detailed in existing supervisory guidance that remain applicable.
Source: Federal Deposit Insurance Corporation
Consumer protection
CFPB publishes Blog Post on Early Retirement Withdrawal under CARES Act
On May 27, 2020, the CFPB published a blog post entitled "Considering an Early Retirement Withdrawal? CARES Act Rules and What You Should Know."
Source: Consumer Financial Protection Bureau
CFPB takes action to help struggling homeowners seeking mitigation efforts; Consumers seeking Small-Dollar Loans
On May 22, 2020, CFPB announced that it issued two No-Action Letter (NAL) Templates under its innovation policies. Using the first NAL Template approved, mortgage servicers seeking to assist struggling borrowers to avoid foreclosure and engage in loss mitigation efforts would be able to apply for their own NAL. To further competition in the small-dollar lending space and facilitate robust competition that fosters access to credit, the Bureau also approved a NAL template that insured depository institutions can use to apply for a NAL covering their small-dollar credit products.
Source: Consumer Financial Protection Bureau
CFPB, CSBS issue Consumer guide on Mortgage relief options
On May 15, 2020, CFPB and Conference of State Bank Supervisors (CSBS) released a Consumer Relief Guide with borrowers’ rights to mortgage payment forbearance and foreclosure protection under the federal CARES Act, to guide homeowners with federally backed loans through the process of obtaining mortgage relief.
Source: Consumer Financial Protection Bureau
Fraud and your investment accounts during COVID-19 pandemic
On May 11, 2020, FINRA released a new Notice to broker-dealers advising firms and their associated persons to be aware of and take appropriate measures to address the increased risks and challenges presented during the COVID-19 pandemic. In addition to new scams focusing on COVID-19, previous scams may also find new life as fraudsters adapt to and exploit recent events and related vulnerabilities, especially those related to the remote working environment.
Source: Financial Industry Regulatory Authority
CFPB issues Final Remittance Rule
On May 11, 2020, CFPB issued a final rule covering remittances transfers. The Remittance Rule imposes requirements on entities that send international money transfers, or remittance transfers, on behalf of consumers.
Source: Consumer Financial Protection Bureau
US regulatory developments (continued)
Regulatory Roundup | Deloitte Center for Regulatory Strategy, Americas 8
US regulatory developments (continued)
Investment management
SEC issues order extending temporary exemptions during COVID-19
On May 27, 2020, the SEC issued an order that extends the temporary exemptions from certain provisions of the Securities and Exchange Act. The exemptions were extended to June 30, 2020.
Source: Securities and Exchange Commission
SEC adopts amendments to improve Financial Disclosures about Acquisitions and Dispositions of Businesses
On May 21, 2020, the SEC announced that it has voted to adopt amendments to its rules and forms to improve for investors the financial information about acquired or disposed businesses, facilitate more timely access to capital, and reduce the complexity and costs to prepare the disclosure.
Source: Securities and Exchange Commission
SEC adopts amendments to the CAT NMS Plan
On May 15, 2020, the SEC voted to adopt amendments to the national market system plan governing the consolidated audit trail (the “CAT NMS Plan”) to bring additional transparency, governance, oversight, and financial accountability to its implementation.
Source: Securities and Exchange Commission
Clayton delivers remarks to the Financial Stability Oversight Council
On May 14, 2020, SEC chairman Jay Clayton in his remarks to the Financial Stability Oversight Council, highlighted the primary responsibilities of SEC from a systemic risk point of view.
Source: Securities and Exchange Commission
SEC Investment Advisory Committee recommends a move toward ESG reporting
On May 14, 2020, the SEC’s Investor Advisory Committee approved a 10-page document recommending that the agency “begin in earnest an effort to update the reporting requirements of Issuers to include material, decision-useful, ESG factors.” To begin the process, the committee recommended the SEC could undertake a series of outreach efforts to investors, Issuers and other market participants which could include roundtables, RFI and other actions on this topic.
Source: Securities and Exchange Commission
SEC publishes COVID-19 Market Monitoring Group’s Update and Current Efforts
On May 13, 2020, SEC published updates and current
efforts, which outlines the coordination with U.S. and foreign regulatory partners and public sector officials in identifying and responding to the effects of COVID-19 and other initiatives of SEC.
Source: Securities and Exchange Commission
Jay Clayton and S.P. Kothari issue statement on COVID-19 Market Monitoring Group Updates
On May 13, 2020, the SEC Chairman Jay Clayton and Chief Economist S.P. Kothari issued a statement on updates and current efforts of the COVID-19 Market Monitoring Group.
Source: Securities and Exchange Commission
Regulatory Roundup | Deloitte Center for Regulatory Strategy, Americas 9
US regulatory developments (continued)
BSA/AML
FinCEN issues advisory on Medical Scams related to COVID-19 and Companion Notice Providing Filing Instructions for Financial Institutions
On May 18, 2020, FinCEN issued an advisory to alert financial institutions to rising medical scams related to the COVID-19 pandemic. This advisory contains red flags, descriptions of COVID-19 related medical scams, and information on reporting suspicious activity. FinCEN also issued a companion notice that provides detailed filing instructions for financial institutions, which will serve as a reference for future COVID-19 advisories.
Source: Financial Crimes Enforcement Network
BIS issues FSI brief on Financial Crimes During COVID-19
On May 14, 2020, the Bank for International Settlements issued a Financial Stability Institute Briefs article entitled "Financial Crime in Times of Covid-19 - AML and Cyber Resilience Measures."
Source: Bank for International Settlements
Derivatives
CFTC unanimously approves an Interim Final Rule and a Proposed Rule at May 28 Open Meeting
On May 28, 2020, the Comptroller of the Currency unanimously approved an interim final rule to grant an extension of the compliance schedule for initial margin requirements for uncleared swaps in response to operational challenges certain entities are facing due to the COVID-19 (coronavirus) pandemic. The Commission also unanimously approved a proposed rule which provides an exemption from registration as a commodity pool operator (CPO) for certain foreign persons.
Source: Commodity Futures Trading Commission
CFTC publishes Request for Comment on 2020-2024 Strategic Plan
On May 19, 2020, the CFTC published in the Federal Register a request for public comment on its 2020-2024 Strategic Plan. Comments are due June 18, 2020.
Source: Commodity Futures Trading Commission
CFTC issues Advisory Letter on Risk Management and Market Integrity during COVID-19
On May 13, 2020, The CFTC issued an Advisory Letter to remind Designated Contract Markets, Futures Commission Merchants and Derivatives Clearing Organizations that they are expected to prepare for the possibility that certain contracts may continue to experience extreme market volatility, low liquidity and possibly negative pricing.
Source: Commodity Futures Trading Commission
Insurance
FDIC issues Proposed Rule to mitigate the Deposit Insurance Assessment Effect of Participation in the PPP, the PPP Lending Facility, and MMFLF
On May 12, 2020, FDIC approved a notice of proposed rulemaking that would mitigate the deposit insurance assessment effects of participating in the Paycheck Protection Program (PPP) established by the U.S. Small Business Administration (SBA) and the Paycheck Protection Program Lending Facility (PPPLF) and Money Market Mutual Fund Liquidity Facility (MMLF) established by the Board of Governors of the Federal Reserve System. The PPP, PPPLF and MMLF were put in place to provide financing to small businesses and liquidity to small business lenders and the broader credit markets, and to help stabilize the financial system in a time of significant economic strain.
Source: Federal Deposit Insurance Corporation
FinTech
How to Protect Yourself and Your Firm from Cyberattacks When Working from Home During COVID-19?
On May 19, 2020, FINRA staff and industry panelists provided examples of effective controls and tools their firms have put into place to monitor and address cybersecurity risks. Because of challenges posed by COVID-19 and the need to halt the spread of this pandemic, working from home has become a trend. Cybercriminals are alert to the work from home trend and they are using this to their advantage to infiltrate our organizations.
Source: Financial Industry Regulatory Authority
Regulatory Roundup | Deloitte Center for Regulatory Strategy, Americas 10
US regulatory developments (continued)
FinTech (continued)
Committee holds Bipartisan Virtual Roundtable with Cybersecurity Experts
On May 28, 2020, the Subcommittee on National Security, International Development, and Monetary Policy held a virtual roundtable with cybersecurity experts entitled, “Understanding the Cyber Threats and Actors Exploiting the COVID-19 Crisis."
Source: US House Committee on Financial Services
Regulatory Roundup | Deloitte Center for Regulatory Strategy, Americas 11
EMEA regulatory developments
Banking & Capital Markets
• Financial Conduct Authority (FCA) –The Financial Conduct Authority issued a consultation on proposed additional temporary guidance to strengthen payment firms' prudential risk management and arrangements for safeguarding customers' funds in light of the COVID-19 pandemic. Read more here, here.
• Bank of England (BOE) – The Bank of England published a Bank Overground blog post entitled "How Are We Monitoring the Economy during the COVID-19 Pandemic?“ Read more here.
• Bank for International Settlements (BIS) – Bank for International Settlements (BIS) appoints Tara Rice as Head of Secretariat for the Committee on Payments and Market Infrastructures. Read more here.
• For more information in regards to EMEA regulatory developments, please visit the FS Risk and Regulation Monthly page.
APAC regulatory developmentsBanking & Capital Markets
• Australian Prudential Regulation Authority (APRA) –APRA publishes FAQs to provide authorized deposit-taking institutions with up-to-date guidance on supervisors’ expectations due to pandemic. Read more here.
• Australian Federal Government – Australian federal government announced that implementation commitments that are yet to be introduced into parliament will be delayed by six months. Read more here.
• Hong Kong Monetary Authority (HKMA) – HKMA published guidance on the application of measures to alleviate the impact of COVID-19 from the Basel Committee on Banking Supervision (BCBS) and Central Bank Governors and Heads of Supervision (GHOS). Read more here.
• HKMA - Report on Review of Self-assessments on Bank Culture. Read more here.
• HKMA - Common Assessment Framework on Green and Sustainable Banking. Read more here.
• Japan Financial Services agency (JFSA) - Revision of the Financial Function Enhancement Act. Read more here.
• JFSA - Finance Minister Aso reaffirmed that financial firms should support SMEs based on the decision of the second supplementary budget. Read more here.
• Bank of Japan (BOJ) - Introduction of a New Fund-Provisioning Measure to Support Financing Mainly of Small and Medium-Sized Firms. Read more here.
• Monetary Authority of Singapore (MAS) - Safe Re-Opening of more Customer Services in the Financial Sector from June 2, 2020. Read more here.
Derivatives
• MAS - Consultation Paper on Proposed Regulatory Approach for Derivatives Contracts on Payment Tokens. Read more here.
FinTech
• MAS – New S$6 Million Grant Scheme to Support Singapore FinTech Firms. Read more here.
Investment Management
• Australian Securities & Investments Commission (ASIC) – 20-109MR ASIC defers commencement of mortgage broker reforms and design and distribution obligations . Read more here.
• ASIC - 20-113MR ASIC to further extend financial reporting deadlines for listed and unlisted entities and amends ‘no action’ position for Annual General Meetings (AGMs). Read more here.
• HKMA – Concurrent SFC-HKMA thematic review of spread charges and other practices to assess intermediaries’ spread charges. Read more here.
Other
• JFSA –Declaration of cancellation of emergency situation related to new coronavirus infection Regarding future measures. Read more here.
For more information in regards to APAC regulatorydevelopments, please visit the FS Risk and Regulation Monthlypage.
Regulatory Roundup | Deloitte Center for Regulatory Strategy, Americas 12
FFIEC statement on risk management for cloud computing servicesOn April 30, 2020, the Federal Financial Institutions Examination Council (FFIEC), on behalf of the bank regulators issued a joint statement to address the use of cloud computing services and security risk management principles in the financial services industry. The statement represents a continuation of increased regulatory attention and oversight of cloud computing within the industry. The recommendations within the statement represent close alignment with other global regulators and encourage financial services institutions (FSIs) to consider their risk management practices as it relates to usage of the cloud. Learn more about the FFIEC’s recommendations and what steps FSI should consider to shore up their risk management practices as it relates to cloud computing.
Recent regulatory reporting revisions and supplemental instructions for the interim final rules and notices issued for March 2020As banks navigate through this time of uncertainty, the impact of COVID-19 raises several considerations to be aware of when preparing regulatory reports. The Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board (FRB), and the Office of the Comptroller of the Currency (OCC) (collectively, the Agencies) have codified interim final rules (IFRs) and a notice that impacts regulatory reports, and have published detailed reporting guidance in the supplemental instructions that are provided each quarter. The FRB has also issued an interim rule, discontinuing the monitoring of third-party transfers from savings accounts, clarifying reporting instructions for the FFIEC 002 and adopting the final rule on the implementation of Single Counterparty Credit Limits (SCCL) by Foreign Banking Organizations (FBOs). Download the article to learn more about each of these topics by downloading our recent article that covers COVID-19 regulatory reporting changes.
The CARES Act: Mortgage responseThe CARES Act seeks to address many of the housing-related challenges facing individual homeowners and renters resulting from the growing economic slowdown. As a result of COVID-19, many individuals may face hardships in paying their mortgage loans and rents. Financial institutions are beginning to prepare themselves for these financial challenges by granting forbearances and readying for the potential influx of loan modifications and—worst case scenario—foreclosures that may be coming in the future. The CARES Act provides relief for many of these economic effects by providing temporary foreclosure, eviction protection, and forbearance relief for single-family and multi-family property owners and renters. Learn more about the compliance and operational impacts in our latest article.
Featured DCRS content
Regulatory Roundup | Deloitte Center for Regulatory Strategy, Americas 13
Alok SinhaRegulatory and Operations Risk Market LeaderPrincipal | Deloitte Risk & Financial AdvisoryDeloitte & Touche [email protected]
Banking & Capital Markets
Vikram BhatUS Advisory Banking & Capital Markets LeaderPrincipal | Deloitte Risk & Financial AdvisoryDeloitte & Touche [email protected]
Garrett O’Brien Principal | Deloitte Risk & Financial AdvisoryDeloitte & Touche [email protected]
Investment Management
Krissy DavisUS Advisory Investment Management LeaderPartner | Deloitte Risk & Financial AdvisoryDeloitte & Touche [email protected]
Maria GattusoPrincipal | Deloitte Risk & Financial AdvisoryDeloitte & Touche [email protected]
Monica O’ReillyUS Advisory Financial Services Industry LeaderPrincipal | Deloitte Risk & Financial AdvisoryDeloitte & Touche [email protected]
Insurance
Richard GodfreyUS Advisory Insurance LeaderPrincipal | Deloitte Risk & Financial AdvisoryDeloitte & Touche [email protected]
David SherwoodManaging Director | Deloitte Risk & Financial AdvisoryDeloitte & Touche [email protected]
Deloitte Center for Regulatory Strategy
Irena Gecas-McCarthyFSI Director, Deloitte Center for Regulatory Strategy, AmericasPrincipal | Deloitte Risk & Financial AdvisoryDeloitte & Touche [email protected]
Austin TuellManager | Deloitte Risk & Financial AdvisoryDeloitte & [email protected]
Kyle CookeSenior Consultant | Deloitte Risk & Financial AdvisoryDeloitte & [email protected]
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