PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update -- Thursday, July 27, 2023
July 27, 2023
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Major Developments
Departments of Justice, Commerce, and Treasury Issue Joint Compliance Note on Voluntary Self-Disclosure Of Potential Violations
July 26, 2023
The Department of Justice, Department of Commerce's Bureau of Industry and Security (BIS), and the Department of the Treasury's Office of Foreign Assets Control (OFAC) issued a joint compliance note focusing on the voluntary self-disclosure policies that apply to U.S. sanctions, export controls, and other national security laws, including recent updates to certain of those policies.
Congress
U.S. House of Representatives
Committee on Financial Services
Committee Holds Markup of Financial Assets Ecosystem Legislation
July 26, 2023
The U.S. House Committee on Financial Services held a markup on the following legislation:
H.R. 4763, the Financial Innovation and Technology for the 21st Century Act
H.R. 1747, the Blockchain Regulatory Certainty Act
H.R. 3244, the Stop Fentanyl Money Laundering Act of 2023
H.R. 4768, the No Russian Agriculture Act
H.R. 4765, the Exposing China's Support for the Taliban Act
H.R. 2969, the Financial Technology Protection Act of 2023
- Markup Page and Hearing Video
- Chair McHenry Remarks
- Ranking Member Waters Remarks
Committee on Small Business
Committee on Small Business Holds Hearing on Challenges Facing Rural Small Businesses
July 26, 2023
The U.S. House Committee on Small Business held a hearing entitled, "Rural Entrepreneurship: Examining the Challenges and the State of Rural Small Businesses."
Federal Agencies
U.S. Department of the Treasury
Testimony of Under Secretary for International Affairs Jay C. Shambaugh Before the Committee on Foreign Relations, U.S. Senate addressing Economic Coercion and increasing U.S. Competitiveness
July 26, 2023
Treasury's Under Secretary for International Affairs Jay C. Shambaugh testified at a hearing before the U.S. Senate Committee on Foreign Relations.
Remarks By Assistant Secretary for Financial Institutions Graham Steele at the Americans for Financial Reform Education Fund regarding Lessons from SVB
July 25, 2023
Assistant Secretary for Financial Institutions Graham Steele gave remarks at the Americans for Financial Reform Education Fund.
Federal Reserve Board
Federal Reserve issues FOMC statement
July 26, 2023
The Board of Governors of the Federal Reserve Systems Federal Open Market Committee issued a statement announcing the unanimous vote to raise the interest rate paid on reserve balances by 25 bps to 5.4 percent.
Conference of State Bank Supervisors
Blog: Worse Than Dismal: Community Banker Sentiment at Another Record Low
July 26, 2023
The Conference of State Bank Supervisors published a blog post entitled, "Worse Than Dismal: Community Banker Sentiment at Another Record Low."
Securities and Exchange Commission
SEC Proposes Reforms Relating to Investment Advisers Operating Exclusively Through the Internet
July 26, 2023
The Securities and Exchange Commission (SEC) proposed amendments to the rule permitting certain investment advisers that provide investment advisory services through the internet to register with the Commission.
- Proposed Rule
- Fact Sheet
- Press Release
- Chair Gensler Statement
- Commissioner Crenshaw Statement
- Commissioner Lizarraga Statement
- Commissioner Peirce Statement
- Commissioner Uyeda Statement
SEC Proposes New Requirements to Address Risks to Investors From Conflicts of Interest Associated With the Use of Predictive Data Analytics by Broker-Dealers and Investment Advisers
July 26, 2023
The SEC proposed new rules that would require broker-dealers and investment advisers (collectively, "firms") to take certain steps to address conflicts of interest associated with their use of predictive data analytics and similar technologies to interact with investors to prevent firms from placing their interests ahead of investors' interests.
- Proposed Rule
- Fact Sheet
- Press Release
- Chair Gensler Statement
- Commissioner Crenshaw Statement
- Commissioner Lizarraga Statement
- Commissioner Peirce Statement
- Commissioner Uyeda Statement
SEC Adopts Rules on Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure by Public Companies
July 26, 2023
The SEC adopted rules requiring registrants to disclose material cybersecurity incidents they experience and to disclose on an annual basis material information regarding their cybersecurity risk management, strategy, and governance.
- Final Rule
- Fact Sheet
- Press Release
- Chair Gensler Statement
- Commissioner Crenshaw Statement
- Commissioner Lizarraga Statement
- Commissioner Peirce Statement
- BPI Statement
Remarks at the SEC/DFI/NASAA Joint Public Roundtable
July 25, 2023
Securities and Exchange Commission Commissioner Mark T. Uyeda gave remarks at the SEC/DFI/NASAA Joint Public Roundtable.
Commodity Futures Trading Commission
CFTC Holds Open Meeting, Approves Four Regulations
July 26, 2023
The Commodity Futures Trading Commission held an open meeting on Wednesday, July 26, where it considered and approved the following:
i) Final Rule: Reporting and Information Requirements for Derivatives Clearing Organizations
ii) Proposed Rule: Swap Confirmation Requirements for Swap Execution Facilities
iii) Proposed Rule: Amendments to Provisions Common to Registered Entities
iv) Proposed Rule: Amendments to Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants (Seeded Funds and Money Market Funds)
- Meeting
- Agenda
- Chair Behnam Opening Statement
- Commissioner Goldsmith Romero Opening Statement
- Commissioner Johnson Opening Statement
- Commissioner Pham Opening Statement
- Reporting and Information Requirements Final Rule
- Swap Confirmation Requirements Proposed Rule
- Provisions Common to Registered Entitles Amendments Proposed Rule
- Margin Requirements Proposed Rule
Consumer Financial Protection Bureau
CFPB Exams Find Unfair, Deceptive, and Abusive Practices Across a Wide Array of Consumer Financial Product Lines
July 26, 2023
The Consumer Financial Protection Bureau (CFPB) released a new Supervisory Highlights report which found unfair, deceptive, and abusive acts or practices across many consumer financial products.
Blog: Looking at credit scores only tells part of the story – cashflow data may tell another part
July 26, 2023
The CFPB published a blog post entitled, "Looking at credit scores only tells part of the story – cashflow data may tell another part."
Federal Housing Finance Agency
Working Paper: How Do Students Value an Elite Education? Evidence on Residential Location and Applications to NYC Specialized Schools
July 26, 2023
The Federal Housing Finance Agency published a working paper entitled, "How Do Students Value an Elite Education? Evidence on Residential Location and Applications to NYC Specialized Schools."
International
European Banking Authority
The EBA consults on Guidelines on the establishment of national lists or registers of credit services
July 26, 2023
The European Banking Authority launched a public consultation on its draft Guidelines on the establishment and maintenance of national lists or registers of credit servicers under Directive 2021/2167.
Bank of England Prudential Regulation Authority
Policy Statement: Credit Unions: Changes to the regulatory regime
July 26, 2023
The Prudential Regulation Authority published a policy statement entitled, "Credit Unions: Changes to the regulatory regime."
Supervisory Statement: Supervising credit unions
July 26, 2023
The Prudential Regulation Authority published a supervisory statement entitled, "Supervising credit unions."
UK Financial Conduct Authority
Financial Lives survey highlights importance of the FCA's Consumer Duty
July 26, 2023
The Financial Conduct Authority released its latest Financial Lives survey.
Administration Changes
Vacancies
Board of Governors of the Federal Reserve System
- Vice Chair – Vacant (Vice Chair Leal Brainard resigned effective on or around February 20, 2023)
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 (nominated May 12, 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 May 23, 2022)
- Governor Adriana Kugler (nominated May 12, 2023)
- Federal Reserve announces appointment of Joshua Gallin as Secretary of the Federal Open Market Committee (February 2, 2023)
- President Biden nominates Dr. Philip Jefferson for Vice Chair and Dr. Adriana Kugler to serve as a Member on the Federal Reserve Board, and renominates Dr. Lisa Cook for an additional full term as Member (May 12, 2023)
Federal Reserve Bank of New York – John C. Williams (effective June 18, 2018)
- Vincent Alvarez designated Chair of Federal Reserve Bank of New York Board of Directors; Rosa Gil designated Deputy Chair (January 10, 2023)
- Pat Wang appointed as a Class C Director to Federal Reserve Bank of New York Board of Directors (January 10, 2023)
- Federal Reserve Bank of New York names Roberto Perli SOMA Manager (February 2, 2023)
- Cali Brooks and Miguel Soto-Class appointed to Federal Reserve Bank of New York Community Advisory Board (April 4, 2023)
- Federal Reserve Bank of New York names Mihaela Nistor as Chief Risk Officer and Head of the Risk Group (May 31, 2023)
- Federal Reserve Bank of New York names Beverly Hirtle as Research Advisor and begins search for new Director of Research (June 6, 2023)
- Aisha Benson appointed to the Federal Reserve Bank of New York Community Advisory Group (June 20, 2023)
Federal Reserve Bank of Boston – Susan M. Collins (effective July 1, 2022)
- Federal Reserve Bank of Boston announces 2023 Board of Directors (January 10, 2023)
- Federal Reserve Bank of Boston announces new external advisory council members (April 10, 2023)
- Federal Reserve Bank of Boston names Egon Zakrajšek as Director of Economic Research (May 17, 2023)
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)
- FDIC announces senior leadership changes in Division of Risk Management Supervision (January 26, 2023)
- FDIC names three bankers to Minority Depository Institutions Subcommittee (May 25, 2023)
- FDIC names eight new members to Advisory Committee on Community Banking (May 26, 2023)
Office of the Comptroller of the Currency – Michael Hsu (acting Comptroller, effective May 10, 2021)
- OCC announces Deputy Comptroller for Systemic Risk Identification and Support (January 11, 2023)
- Kristen Baldwin named OCC Chief Information Officer (February 8, 2023)
Securities and Exchange Commission – Gary Gensler (effective April 17, 2021)
- SEC announces appointment of Cristina Martin Firvida as Investor Advocate (January 10, 2023)
- Paul Munter named Chief Accountant (January 11, 2023)
- Erik Gerding named Director of Division of Corporation Finance (January 13, 2023)
- Silvestre Fontes named Director of Boston Regional Office (January 25, 2023)
- Cicely LaMothe named Deputy Director, Disclosure Operations, for the Division of Corporation Finance (February 14, 2023)
- SEC appoints Deborah J. Jeffrey as Inspector General (April 17, 2023)
- Eric R. Werner named Director of Fort Worth Regional Office (April 25, 2023)
Commodity Futures Trading Commission – Rostin Behnam (effective December 17, 2021)
- Commissioner Pham announces members of the CFTC's Global Markets Advisory Committee (January 12, 2023)
- Commissioner Pham announces additional staff appointment (February 7, 2023)
- Chairman Behnam announces veteran Federal prosecutor Ian McGinley as Enforcement Director (February 28, 2023)
- Commissioner Goldsmith Romero announces Yevgeny Shrago as Senior Counsel and Policy Advisor (April 14, 2023)
- CFTC appoints Jeffrey Sutton as Executive Director (April 18, 2023)
- Commissioner Goldsmith Romero announces Scott Lee as Senior Counsel and Policy Advisor (July 11, 2023)
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)
- Senate confirms Dilwar Syed as Deputy Administrator for the U.S. Small Business Administration (June 8, 2023)
- Dilawar Syed sworn in as Deputy Administrator of the U.S. Small Business Administration (July 11, 2023)
U.S. Department of Housing and Urban Development – Marcia Fudge (effective March 10, 2021)
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.