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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Friday, December 17, 2021

December 17, 2021

FedACTion Task Force

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PH Client Alerts

Click here to read more from our Coronavirus series.

Congress

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.

Federal Agencies

Federal Reserve Board

Federal Deposit Insurance Corporation

Agencies Release Annual Asset-size Thresholds under Community Reinvestment Act Regulations

December 16, 2021

The Federal Reserve Board and the Federal Deposit Insurance Corporation announced the 2022 updated asset-size thresholds used to define "small bank" and "intermediate small bank" under the Community Reinvestment Act regulations.

Federal Reserve Board

Industrial Production and Capacity Utilization - G.17

December 16, 2021

The Federal Reserve Board published its November Industrial Production and Capacity Utilization data release. Industrial production rose 0.5% in November. The indexes for both manufacturing and mining increased 0.7%, while the index for utilities decreased 0.8%.

Federal Reserve Bank of New York

Report: Business Leaders Survey

December 16, 2021

The Federal Reserve Bank of New York published its December 2021 Business Leaders Survey.

Office of the Comptroller of the Currency

OCC Seeks Feedback on Principles for Climate-Related Financial Risk Management for Large Banks

December 16, 2021

The Office of the Comptroller of the Currency (OCC) requested feedback on draft principles designed to support the identification and management of climate-related financial risks at national banks and federal savings associations with more than $100 billion in total consolidated assets. The OCC expects to use the feedback to inform any future guidance with respect to climate-related financial risk.

Securities and Exchange Commission

PCAOB Makes HFCAA Determinations Regarding Mainland China and Hong Kong

December 16, 2021

The Public Company Accounting Oversight Board (PCAOB) issued a report on its determinations that the PCAOB is unable to inspect or investigate completely PCAOB-registered public accounting firms headquartered in mainland China and in Hong Kong, a Special Administrative Region of the People's Republic of China (PRC), because of positions taken by PRC authorities in those jurisdictions.

Commodity Futures Trading Commission

CFTC's Interest Rate Benchmark Reform Subcommittee Issues User Guide for the Transition of Exchange-Traded Derivatives Activity to SOFR

December 16, 2021

The Interest Rate Benchmark Reform Subcommittee, a subcommittee of the Commodity Futures Trading Commission's Market Risk Advisory Committee (MRAC), issued a user guide for the transition of newly-executed exchange-traded derivatives from LIBOR to the Secured Overnight Financing Rate (SOFR) pursuant to the MRAC's approval of the SOFR First Initiative at its July 13, 2021 meeting.

Consumer Financial Protection Bureau

Consumer Financial Protection Bureau Opens Formal Inquiry into "Buy Now, Pay Later" Credit Programs

December 16, 2021

The Consumer Financial Protection Bureau (CFPB) issued a series of orders to five companies offering "buy now, pay later" credit.

National Credit Union Administration

Board Approves 2022-2023 Budget, Sets Normal Operating Level

December 16, 2021

The National Credit Union Administration (NCUA) Board held its eleventh open meeting of 2021 through a live webcast and approved four items:

  • The operating, capital, and National Credit Union Share Insurance Fund budgets for 2022 and 2023;
  • A final rule creating a simplified measure of capital adequacy for complex credit unions;
  • A final rule permitting federal credit unions to purchase mortgage servicing rights from other federally insured credit unions; and
  • A final rule amending the NCUA's subordinated debt rules to facilitate investments from the U.S. Treasury's Emergency Capital Investment Program.

In addition, the NCUA Board approved the National Credit Union Share Insurance Fund's Normal Operating Level to be 1.33% in 2022.

Letter: Relationships with Third Parties that Provide Services Related to Digital Assets

December 16, 2021

National Credit Union Administration (NCUA) Chairman Todd M. Harper wrote a letter to provide clarity about the already existing authority of federally insured credit unions (FICUs) to establish relationships with third-party providers that offer digital asset services to the FICUs' members, provided certain conditions are met. This includes third-party provided services to allow FICU members to buy, sell and hold uninsured digital assets with the third-party provider outside of the FICU.

Freddie Mac

Freddie Mac Expanding Eligibility to Help More Low- and Moderate-Income Homeowners Refinance Affordably

December 16, 2021

Freddie Mac issued a statement in support of an announcement by the Federal Housing Finance Agency (FHFA) that Freddie Mac and Fannie Mae's low-income refinance programs will be expanded to include those making at or below 100% of the area median income (AMI) – up from 80% AMI.

International

European Commission

EU Institutions Agree Priorities for 2022 for a Resilient and Reinvigorated EU

December 16, 2021

The leaders of the EU institutions signed a Joint Declaration identifying key legislative priorities for 2022, and welcomed progress on the 2021 priorities.

European Banking Authority

EBA Strengthens AML/CFT Supervision in the EU through Revised Guidelines and Enhanced Cooperation

December 16, 2021

The European Banking Authority published its revised Guidelines on risk-based supervision of credit and financial institutions' compliance with anti-money laundering and countering the financing of terrorism obligations.

EBA Issues Final Guidelines on Cooperation and Information Exchange Between Prudential Supervisors, AML/CFT Supervisors and Financial Intelligence Units

December 16, 2021

The European Banking Authority published its final Guidelines setting out how prudential supervisors, anti-money laundering and countering the financing of terrorism (AML/CFT) supervisors and financial intelligence units should cooperate and exchange information in relation to AML/CFT, in line with provisions laid down in the Capital Requirements Directive.

Report: The EBA's Feasibility Study on Integrated Reporting System Provides a Long-Term Vision for Increasing Efficiencies and Reducing Reporting Costs

December 16, 2021

The European Banking Authority published its final report on the feasibility study of an integrated reporting system. The study is part of a broader strategy of the European Commission to improve and modernize EU supervisory reporting while minimizing the aggregate reporting burden for all parties.

Bank of England

Latest Results from the Decision Maker Panel Survey – 2021 Q4

December 16, 2021

The Bank of England published its 2021 fourth quarter Decision Maker Panel Survey.

Report: Agents' Summary of Business Conditions – 2021 Q4

December 16, 2021

The Bank of England (BoE) published its 2021 fourth quarter agents' summary of business conditions.

Letter: Exchange of Letters between the Governor and the Chancellor Regarding CPI Inflation – December 2021

December 16, 2021

Governor of the Bank of England (BoE) Andrew Bailey and Chancellor of the Exchequer Rishi Sunak exchanged letters regarding Consumer Prices Index inflation.

Bank of England Prudential Regulation Authority

Inventory of Senior Manager Responsibilities

December 16, 2021

The Bank of England Prudential Regulation Authority published an inventory of senior manager responsibilities.

Administration Changes

Appointments/Confirmation Hearings

U.S. Department of the Treasury - Janet Yellen (effective January 26, 2021)

Federal Reserve Board

Consumer Financial Protection Bureau - Rohit Chopra (effective October 12, 2021)

Securities and Exchange Commission - Gary Gensler (effective April 17, 2021)

Small Business Administration - Isabella Casillas Guzman (effective March 16, 2021)

Commodity Futures Trade Commission

Financial Crimes Enforcement Network

National Credit Union Administration - Todd M. Harper

U.S. Department of Housing and Urban Development - Marcia Fudge (effective March 10, 2021)

Federal Housing Finance Agency – Sandra L. Thompson

U.S. Department of Education - Dr. Miguel Cardona (effective March 2, 2021)