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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Thursday, October 27, 2022

October 27, 2022

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Federal Agencies

U.S. Department of the Treasury

U.S. Treasury Targets Corruption and the Kremlin's Influence Operations in Moldova

October 26, 2022

The U.S. Department of the Treasury's Office of Foreign Assets Control took action to counter the Government of the Russian Federation's persistent influence campaigns and systemic corruption in Moldova by imposing sanctions on nine individuals and 12 entities.

Treasury Sanctions Iranian Officials and Entities Responsible for Ongoing Crackdown on Protests and Internet Censorship

October 26, 2022

The U.S. Department of the Treasury's Office of Foreign Assets Control is designating 10 Iranian officials for the ongoing crackdown on nationwide protests in Iran, as well as two Iranian intelligence actors and two Iranian entities involved in the Iranian government's efforts to disrupt digital freedom.

Treasury Participates Stakeholder Roundtable on Clean Power Generation and the Inflation Reduction Act

October 26, 2022

U.S. Secretary of the Treasury Janet L. Yellen participated in a virtual roundtable with key stakeholders on clean power generation and the Inflation Reduction Act.

Federal Reserve Bank of Boston

Paper: Decentralized Finance (DeFi): Transformative Potential & Associated Risks

October 26, 2022

The Federal Reserve Bank of Boston published a paper entitled, ""Decentralized Finance (DeFi): Transformative Potential & Associated Risks."

Securities and Exchange Commission

SEC Adopts Amendments to Modernize Fund Shareholder Reports and Promote Transparent Fee- and Expense-Related Information in Fund Advertisements

October 26, 2022

The Securities and Exchange Commission voted to adopt rule and form amendments to require mutual funds and exchange-traded funds to transmit concise and visually engaging shareholder reports and to promote transparent and balanced presentations of fees and expenses in investment company advertisements.

SEC Adopts Compensation Recovery Listing Standards and Disclosure Rules

October 26, 2022

The Securities and Exchange Commission adopted rules to require securities exchanges to adopt listing standards that require issuers to develop and implement a policy providing for the recovery of erroneously awarded incentive-based compensation received by current or former executive officers.

SEC Proposes New Oversight Requirements for Certain Services Outsourced by Investment Advisers

October 26, 2022

The Securities and Exchange Commission proposed a new rule and rule amendments under the Investment Advisers Act of 1940 to prohibit registered investment advisers from outsourcing certain services and functions without conducting due diligence and monitoring of the service providers.

Commissioner Uyeda Remarks on "Materiality" and ESG Disclosures

October 26, 2022

Securities and Exchange Commission Commissioner Mark T. Uyeda gave remarks at the Georgetown Law Hotel and Lodging Summit addressing materiality in federal securities laws and the comparability of ESG disclosure in fund documents.

Consumer Financial Protection Bureau

CFPB Issues Guidance to Help Banks Avoid Charging Illegal Junk Fees on Deposit Accounts

October 26, 2022

The Consumer Financial Protection Bureau issued a circular and compliance bulletin about two forms of junk fee practices that could be deemed to be unfair and unlawful under existing law.

State Agencies

New York State Department of Financial Services

DFS Issues Revised Proposed Community Reinvestment Act Regulation to Improve Lending to Minority and Women Owned Businesses

October 26, 2022

Superintendent of Financial Services Adrienne A. Harris announced a revised proposed regulation that will allow the New York State Department of Financial Services to collect data to evaluate how well New York-regulated banking institutions are serving minority- and women-owned businesses in their communities, pursuant to an expansion of New York's Community Reinvestment Act.

International

European Commission

Payments: Commission proposes to accelerate the rollout of instant payments in euro

October 26, 2022

The European Commission adopted a legislative proposal to make instant payments in euro available to all citizens and businesses holding a bank account in the EU and in EEA countries.

Launch of the US-EU Task Force on the Inflation Reduction Act

October 26, 2022

Bjoern Seibert, Head of Cabinet to European Commission President Ursula von der Leyen met in Berlin with U.S. Deputy National Security Advisor, Mike Pyle, to launch the US-EU Task Force on the Inflation Reduction Act.

State aid: Commission further consults Member States on prolongation and adjustment of Temporary Crisis Framework

October 26, 2022

The European Commission is further consulting Member States on a prolongation and adjustment of the State aid Temporary Crisis Framework to support the economy in the context of Russia's war against Ukraine.

Bank of England

Transforming data collection: Data Standards Review update

October 26, 2022

The Bank of England issued a communication providing an update on the Data Standards Review, commissioned by the Transforming Data Collection joint transformation program being led by the Bank of England and FCA with industry.

Bank of England Prudential Regulation Authority

Statement: Regulatory treatment of retail residential mortgages provided under private mortgage insurance schemes with similar contractual features to Mortgage Guarantee Scheme

October 26, 2022

The Bank of England Prudential Regulation Authority released a statement on the regulatory treatment of retail residential mortgage loans under private mortgage insurance schemes with similar contractual features to the Mortgage Guarantee Scheme.

Administration Changes

Vacancies

Federal Deposit Insurance Corporation

  • Chair – Vacant (Martin Gruenberg serves as Acting Chair)
  • Vice Chairman – Travis Hill (nominated September 20, 2022)
  • Member – Jonathan McKernan (nominated September 20, 2022)

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)

Federal Reserve Bank of New York – John C. Williams (effective June 18, 2018)

Federal Deposit Insurance Corporation – Martin Gruenberg (Acting Chair, appointed February 5, 2022)

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 – Rostin Behnam (effective December 17, 2021)

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, (confirmed May 25, 2022)

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

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.