PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update -- Thursday December 19
December 19, 2024
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Major Developments
Federal Reserve Board
Federal Reserve issues FOMC statement
December 18, 2024
The Federal Open Markets Committee decided to lower the target range for the federal funds rate by 1/4 percentage point to 4-1/4 to 4-1/2 percent. The Board of Governors of the Federal Reserve System voted unanimously to lower the interest rate paid on reserve balances to 4.4 percent, effective December 19, 2024.
Federal Reserve Board and Federal Open Market Committee release economic projections from the December 17-18 FOMC meeting
December 18, 2024
The Federal Reserve Board and Federal Open Market Committee released economic projections made by the Committee.
Federal Agencies
Consumer Financial Protection Bureau
CFPB Takes Action on Potential Bait-and-Switch Credit Card Rewards Tactics
December 18, 2024
The Consumer Financial Protection Bureau (CFPB) announced actions today to protect consumers from potentially unfair, deceptive or abusive acts where:
- the redemption values of rewards that consumers have already earned or purchased are devalued;
- consumers’ receipt of rewards is revoked, canceled, or prevented based on buried or vague conditions, such as criteria disclosed only in fine print or up to the operator’s discretion; or
- consumers have reward points deducted from their balance without receiving the corresponding benefit of the rewards, including due to technical failures when redeeming rewards points on merchant partners’ systems.
The CFPB also published new research finding that retail credit cards—which typically offer store-specific rewards and loyalty programs—charge significantly higher interest rates than traditional cards. The CFPB further launched a new tool, Explore Credit Cards, to help consumers find the best credit card rates across both rewards cards and traditional cards.
Securities and Exchange Commission
SEC Approves 2025 PCAOB Budget and Accounting Support Fee
December 18, 2024
The Securities and Exchange Commission voted today to approve the 2025 budget of the Public Company Accounting Oversight Board (PCAOB) and the related annual accounting support fee.
- Order
- Press Release
- Chair Gensler Statement
- Commissioner Peirce Statement
- Commissioner Crenshaw Statement
- Commissioner Lizarraga Statement
Commodity Futures Trading Commission
Resolve to Spot Scams in 2025 Says a New CFTC Customer Advisory
December 18, 2024
A new CFTC customer advisory suggests adding “spotting scams” to your list of New Year’s resolutions.
CFTC Approves Final Rule Regarding Safeguarding and Investment of Customer Funds
December 17, 2024
The Commodity Futures Trading Commission announced it approved a final rule amending the CFTC’s regulations that govern how futures commission merchants and derivatives clearing organizations safeguard and invest customer funds held for the benefit of customers engaging in futures, foreign futures and cleared swaps transactions.
Financial Crimes Enforcement Network
FinCEN Warns of Fraud Schemes That Abuse Its Name, Insignia, and Authorities for Financial Gain
December 18, 2024
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued an alert to raise awareness of fraud schemes abusing FinCEN’s name, insignia, and authorities for financial gain.
FINRA
Regulatory Notice: Amendments Relating to the Applicability of the Document Production Lists to Simplified Customer Arbitrations Administered Under Rule 12800
December 18, 2024
FINRA has amended its Code of Arbitration Procedure for Customer Disputes (Customer Code) to clarify and, in some instances, amend the applicability of the Document Production Lists to simplified customer arbitrations administered under Rule 12800.
Bank Policy Institute
Blog: Blockchain Programmability and Customizability
December 18, 2024
The Bank Policy Institute published a blog post entitled “Blockchain Programmability and Customizability.”
International
European Commission
The second part of the European Semester Autumn Package addresses socio-economic challenges for 2025
December 18, 2024
The Commission unveiled the second part of the European Semester Autumn Package. This second instalment builds upon the first and includes the following: the Commission's proposal for a recommendation on the economic policy of the euro area for 2025, the 2025 Alert Mechanism Report and the Commission's proposal for the 2025 Joint Employment Report.
European Banking Authority
The EBA provides further guidance on reporting requirements under the Markets in Crypto Assets Regulation
December 18, 2024
The European Banking Authority published its final Guidelines on reporting requirements under the Markets in Crypto-assets Regulation (MiCAR) to ensure that Competent Authorities receive sufficient comparable information to supervise compliance of issuers with MiCAR requirements and provide the EBA with the information necessary to conduct the significance assessment under MiCAR.
Overall, the EBA observes a stable number of monitored high earners in the EU in 2023
December 18, 2024
The European Banking Authority published its Dashboard on high earners for 2023.
EU/EEA banks’ profitability is holding up well despite declining net interest margin
December 18, 2024
The European Banking Authority published its Q3 2024 Risk Dashboard, which discloses aggregated statistical information for the largest EU/EEA institutions.
Bank of England
The Bank of England's supervision of financial market infrastructures - Annual Report 2024
December 18, 2024
The Bank of England published its Financial Market Infrastructure Report.
Update to the Bank of England and Financial Conduct Authority Memorandum of Understanding
December 18, 2024
The Memorandum of Understanding between the Bank of England and the Financial Conduct Authority has been updated to reflect changes made by the Financial Services Markets Act 2023.
Bank of England Prudential Regulation Authority
Update on the Dynamic General Insurance Stress Test
December 18, 2024
The Prudential Regulation Authority has announced the postponement of the dynamic general insurance stress test (DyGIST) launch.
Policy Statement: Solvent exit planning for insurers
December 18, 2024
The Prudential Regulation Authority published a policy statement entitled “Solvent exit planning for insurers.”
Supervisory Statement: Solvent exit planning for insurers
December 18, 2024
The Prudential Regulation Authority published a supervisory statement entitled “Solvent exit planning for insurers.”
Financial Conduct Authority
FCA finds two-thirds of young investors take less than 24 hours to make investment decisions
December 18, 2024
The Financial Conduct Authority published research revealing that young investors are making important investment decisions in a matter of hours, rather than taking the time to check out whether the product is right for them in the long-term.
Administration Changes
Vacancies
Appointments/Confirmation Hearings
U.S. Department of the Treasury – Scott Bessent (nominated November 2024); Janet Yellen (effective January 26, 2021)
Federal Reserve Board – Jerome H. Powell (effective May 23, 2022)
- Vice Chair Phillip N Jefferson (sworn in September 13, 2023)
- Vice Chair for Supervision Michael Barr (sworn in July 19, 2022)
- Governor Michelle W. Bowman (sworn in November 26, 2018)
- Governor Christopher J. Waller (sworn in December 18, 2020)
- Governor Lisa D. Cook (sworn in September 13, 2022)
- Governor Adriana D. Kugler (sworn in September 13, 2023)
Federal Reserve Bank of New York – John C. Williams (effective June 18, 2018)
Federal Reserve Bank of Boston – Susan M. Collins (effective July 1, 2022)
Federal Deposit Insurance Corporation – Martin Gruenberg (resigning effective January 19, 2025)
- Vice Chairman Travis Hill (sworn in January 5, 2023)
- Director Jonathan McKernan (sworn in January 5, 2023)
- Director Michael Hsu (Acting Comptroller of the Currency)
- Director Rohit Chopra (Director of Consumer Financial Protection Bureau)
Office of the Comptroller of the Currency – Michael Hsu (acting Comptroller, effective May 10, 2021)
Securities and Exchange Commission – Paul Atkins (nominated December 2024); Gary Gensler (resigning January 20, 2025)
Commodity Futures Trading Commission – Rostin Behnam (effective December 17, 2021)
Consumer Financial Protection Bureau – Rohit Chopra (effective October 12, 2021)
National Credit Union Administration – Todd M. Harper (effective January 20, 2021)
Small Business Administration – Kelly Loeffler (nominated December 2024); Isabella Casillas Guzman (effective March 16, 2021)
U.S. Department of Housing and Urban Development – Scott Turner (nominated November 2024); Marcia Fudge (resigned March 11, 2024, effective March 22, 2024)
Federal Housing Finance Agency – Sandra L. Thompson (effective June 22, 2022)
U.S. Department of Education – Linda McMahon (nominated November 2024); Dr. Miguel Cardona (effective March 2, 2021)
Financial Crimes Enforcement Network – Andrea Gacki (effective July 13, 2023)
PH Client Alerts
Click here to read more from our Coronavirus series.
Legislation/Legislative Updates
Click here to view the full text of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), Enacted March 27, 2020.
Click here to view the full text of the Paycheck Protection Program Increase Act of 2020, Enacted April 24, 2020.
Click here to view the full text of the Paycheck Protection Program Flexibility Act of 2020, Enacted June 5, 2020.
Click here to view the full text of the Consolidated Appropriations Act, 2021, Enacted December 27, 2020.
Click here to view the full text of the American Rescue Plan of 2021, Enacted March 11, 2021.
Click here to view the full text of the PPP Extension Act of 2021, Enacted March 30, 2021.
Click here to view a running list of proposed legislation from the Senate Committee on Banking, Housing, and Urban Affairs, Senate Committee on Small Business and Entrepreneurship, House Committee on Financial Services, and House Committee on Small Business