PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update - Tuesday, June 2, 2020

June 02, 2020

FedACTion Task Force

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Click here to read more from our Coronavirus series.


Click here to view the full text of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), 116 HR. 748, 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 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.

U.S. Senate

Committee on Small Business and Entrepreneurship

Rubio to Chair Hearing on COVID-19’s Impact on Small Business

June 1, 2020

On Wednesday, June 3, 2020, U.S. Senator Marco Rubio (R-FL), Chairman of the Senate Committee on Small Business and Entrepreneurship, will convene a hearing titled, “Perspectives from Main Street: COVID-19’s Impact on Small Business.” The hearing will focus on the long-term impacts the coronavirus pandemic has had on the small business ecosystem, as well as the U.S. Small Business Administration loan programs authorized by the CARES Act. 

The hearing will be live-streamed on the committee’s website here.

Federal Agencies

Conference of State Bank Supervisors

CSBS Issues Comment Letter on CFPB’s Consideration of Fed-State Coordination in Consumer Finance Law Update

June 1, 2020

The Conference of State Bank Supervisors (CSBS) issued a comment letter expressing concerns about the timing and focus of the Consumer Financial Protection Bureau’s (CFPB) request for information (RFI) for recommendations on harmonizing and updating the federal consumer financial laws. Among other things, the CSBS questioned the appropriateness of issuing the RFI during the COVID-19 pandemic, which will likely lead to less public attention and response, and expressed concern that the RFI suggests additional preemption of state laws and state regulatory authority is appropriate.

Office of the Comptroller of the Currency

New Acting Comptroller Sounds Warning About Effects of COVID-19 'Lockdowns' on Banking System

June 1, 2020

In letters to the National League of Cities, the U.S. Conference of Mayors and the National Association of Governors, Acting Comptroller of the Currency Brian P. Brooks urged mayors and governors to consider the adverse impact of long-term regional economic shutdown on the nation's banks when making their decisions. “Certain aspects of these local orders,” wrote Acting Comptroller Brooks, “potentially threaten the stability and orderly functioning of the financial system the OCC is charged by law to protect.”

U.S. Small Business Administration

SBA Publishes “Small Business Facts: Small Business Employment Plummets”

June 1, 2020

The U.S. Small Business Administration’s Office of Advocacy published “Small Business Facts” for May 2020, which found that since a declaration of emergency for COVID-19 was issued on March 13, 2020, total private employment dropped by more than 15%. Small businesses employers bore the brunt, with a decline of more than 17%.


UK Financial Conduct Authority

FCA Provides Update on Test Case of the Validity of Business Interruption Claims

June 1, 2020

The Financial Conduct Authority (FCA) provided an update on progress on its court action on business interruption (BI) insurance policies. Since making its last announcement on May 1, 2020, the FCA has approached 56 insurers, reviewed more than 500 relevant policies from 40 insurers, and has identified a sample of 17 policy wordings that capture the majority of the key issues that could be in dispute. The update gives further detail on the proposed court action, including identifying the representative sample of policy wordings to be examined in the test case, insurers that use those wordings and which of those insurers the FCA has invited, and have agreed, to participate in the proceedings.

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