PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update -- Friday July 26, 2024
July 26, 2024
By Paul Hastings Professional
PH FedACTion: Financial Regulatory Updates
Friday, July 26, 2024
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Major Developments
Federal Reserve Board
Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency
Agencies issue guidance on potential risks associated with third-party deposit arrangements and request additional information on bank-fintech arrangements
July 25, 2024
The Federal Reserve Board, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency issued a statement reminding banks of potential risks associated with third-party arrangements to deliver bank deposit products and services. Separately, the agencies have requested additional information on a broad range of bank-fintech arrangements, including with respect to deposit, payments, and lending products and services. The agencies are seeking input on the nature and implications of bank-fintech arrangements and effective risk management practices.
- Joint Statement
- Request for Information
- Board Memo
- Press Release
- FRB Governor Bowman Statement
- FRB Supervision and Regulation Letter
- FDIC Financial Institution Letter
- OCC Request for Information Bulletin
- OCC Joint Statement Bulletin
Congress
U.S. Senate
Committee on Banking, Housing, and Urban Affairs
Hearing: Advancing National Security through Export Controls, Investment Security, and the Defense Production Act
July 25, 2024
The U.S. Senate Committee on Banking, Housing, and Urban Affairs held a hearing entitled, “Advancing National Security through Export Controls, Investment Security, and the Defense Production Act.” The witnesses included: The Honorable Thea Kendler, Assistant Secretary for Export Administration, Department of Commerce; The Honorable Paul Rosen, Assistant Secretary for Investment Security, Department of the Treasury; The Honorable Grant Harris, Assistant Secretary for Industry and Analysis, Department of Commerce; and The Honorable Laura Taylor-Kale, Ph.D., Assistant Secretary for Industrial Base Policy, Department of Defense.
- Hearing
- Commerce Assistant Secretary Kendler Testimony
- Treasury Assistant Secretary Rosen Testimony
- Commerce Assistant Secretary Harris Testimony
- Defense Assistant Secretary Taylor-Kale Testimony
- Committee Chair Brown Statement
- Committee Ranking Member Scott Statement
Federal Agencies
U.S. Department of the Treasury
Remarks by Secretary Yellen at Press Conference During the G20 Finance Ministers and Central Bank Governors Meetings
July 25, 2024
Secretary of the Treasury Janet L. Yellen gave remarks at a press conference during the G20 Finance Ministers and Central Bank Governors meetings.
United States Announces Up to $667 Million Planned Contribution to the Pandemic Fund to Support Pandemic Prevention, Preparedness, and Response
July 25, 2024
Secretary Yellen announced at the Pandemic Fund Investment Case launch event on the margins of the G20 Finance Ministers and Central Bank Governors meeting that the United States is committing up to $667 million, or one third of the $2 billion resource mobilization goal, to support the Pandemic Fund through 2026, subject to Congressional appropriations and the availability of funds.
Remarks by Secretary Yellen at a Joint Ministerial Meeting on the Global Alliance against Hunger and Poverty
July 24, 2024
Secretary of the Treasury Janet L. Yellen gave remarks at a joint ministerial meeting on the Global Alliance against Hunger and Poverty.
Remarks by Secretary Yellen at the Pandemic Fund Investment Case Launch Event
July 25, 2024
Secretary of the Treasury Janet L. Yellen gave remarks at the Pandemic Fund Investment Case launch event.
Federal Reserve Board
Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency
Federal bank regulatory agencies seek comment on interagency effort to reduce regulatory burden
July 25, 2024
The Federal Reserve Board, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency announced their second notice requesting comment to reduce regulatory burden.
Agencies announce public outreach meeting as part of their review of regulations
July 25, 2024
The Federal Reserve Board, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency will hold a virtual public outreach meeting on September 25, 2024, as part of their review of regulations under the Economic Growth and Regulatory Paperwork Reduction Act of 1996.
Federal Deposit Insurance Corporation
Remarks by Vice Chairman Travis Hill at the American Enterprise Institute “Reflections on Bank Regulatory and Resolution Issues”
July 25, 2024
Federal Deposit Insurance Corporation Vice Chair Travis Hill gave remarks at the American Enterprise Institute “Reflections on Bank Regulatory and Resolution Issues” event.
2023 Financial Institution Diversity Self-Assessment: Voluntary Self-Assessments Accepted Now through October 31, 2024
July 25, 2024
In accordance with the Interagency Policy Statement Establishing Joint Standards for Assessing the Diversity Policies and Practices of Entities Regulated by the Agencies, FDIC-supervised financial institutions are encouraged to voluntarily conduct and submit self-assessments of their diversity policies and practices by October 31, 2024.
Consumer Financial Protection Bureau
CFPB Report Highlights Junk Fees Charged by School Lunch Payment Platforms
July 25, 2024
The Consumer Financial Protection Bureau released a report on payment processing companies that help school districts process children’s school lunch payments.
CFPB Warns Against Intimidation of Whistleblowers
July 24, 2024
The Consumer Financial Protection Bureau issued a circular to law enforcement agencies and regulators explaining how companies may be breaking the law by requiring employees to sign broad nondisclosure agreements that could deter whistleblowing.
Federal Financial Institutions Examination Council
FinCEN Updates Frequently Asked Questions on Beneficial Ownership Information
July 25, 2024
The Financial Crimes Enforcement Network (FinCEN) has updated its Beneficial Ownership Information Frequently Asked Questions to include new information for entities that are disregarded for U.S. tax purposes, as well as updated information that addresses the timeframe for obtaining an Employer Identification Number (EIN) from the IRS.
FINRA
FINRA’s Remote Inspections Pilot Program Begins; 741 Member Firms Opt-In to Participate
July 25, 2024
FINRA announced that a total of 741 member firms volunteered to participate in FINRA’s Remote Inspections Pilot Program.
International
European Commission
Commission takes action to ensure complete and timely transposition of EU directives
July 25, 2024
The Commission is adopting a package of infringement decisions due to the absence of communication by Member States of measures taken to transpose EU directives into national law. The Commission is sending a letter of formal notice to 26 Member States who have failed to notify national measures transposing directives in the field of climate and defense, whose transposition deadline expired recently. Member States concerned now have two months to reply to the letters of formal notice and complete their transposition, or the Commission may decide to issue a reasoned opinion.
Commission proposes to postpone by one year the market risk prudential requirements under Basel III in the EU
July 24, 2024
The European Commission has adopted a delegated act that postpones by one year (i.e. until 1 January 2026) the date of application of one part of the Basel III standards in the EU – the Fundamental Review of the Trading Book.
European Banking Authority
The EBA extends the existing Joint Committee Guidelines on complaints handling to credit servicers
July 24, 2024
The European Banking Authority published final Guidelines that extend the existing Joint Committee Guidelines on complaints handling to credit servicers under the new Credit Servicers Directive.
The EBA responds to the EU Parliament’s 2022 Discharge Report
July 24, 2024
The European Banking Authority published an Opinion in response to the observations made by European Parliament in its 2022 Discharge Report.
Bank of England
Contingent NBFI Repo Facility (CNRF)
July 24, 2024
The Bank of England published an explanatory note and provisional market notice the expected design for a new financial stability tool – the Contingent NBFI Repo Facility – that the Bank of England intends to invite applications for later this year.
Bank of England Prudential Regulation Authority
The Prudential Regulation Authority’s approach to rule permissions and waivers
July 25, 2024
The Prudential Regulation Authority published a policy statement and statement of policy on its approach to rule permissions and waivers.
Financial Conduct Authority
FCA confirms plan to protect access to cash for consumers and small businesses
July 24, 2024
The Financial Conduct Authority confirmed new rules that banks and building societies will need to weigh up if local communities lack access to cash services, like branches and ATMs, and plug significant gaps.
Administration Changes
Vacancies
Office of the Comptroller of the Currency
- Comptroller – Vacant (Michael Hsu serves as Acting Comptroller)
Appointments/Confirmation Hearings
U.S. Department of the Treasury – 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 (effective January 5, 2023)
- 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 – Gary Gensler (effective April 17, 2021)
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 – Isabella Casillas Guzman (effective March 16, 2021)
U.S. Department of Housing and Urban Development – Marcia Fudge (effective March 10, 2021) (resigned March 11, 2024, effective March 22, 2024)
Federal Housing Finance Agency – Sandra L. Thompson (effective June 22, 2022)
U.S. Department of Education – 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.