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Daily Financial Regulation Update -- Saturday, March 27, 2021

March 27, 2021

By Paul Hastings Professional

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Major Developments

Senate Passes Legislation Introduced by Senators Cardin, Collins and Shaheen to Extend PPP Deadline to May 31st

March 26, 2021

The U.S. Senate passed the PPP Extension Act of 2021 by a vote of 92-7. The bill was introduced by Senate Small Business Committee Chair Ben Cardin (D-MD) and Senators Susan Collins (R-ME) and Jeanne Shaheen (D-NH). The bill will extend the deadline for Paycheck Protection Program applications for another two months to May 31, 2021, and then provide an additional 30-day period for the Small Business Administration to process applications that are still pending. The House of Representatives passed the bill on March 16 by a vote of 415-3 and President Biden is expected to sign the bill into law.

Administration Changes

Appointments/Confirmation Hearings

Department of the Treasury – Janet Yellen (effective January 26, 2021)

Consumer Financial Protection Bureau – Rohit Chopra (Nominee)

Securities and Exchange Commission – Gary Gensler (Nominee)

Small Business Administration – Isabel Guzman (effective March 16, 2021)

Commodity Futures Trade Commission

National Credit Union Administration – Todd M. Harper

Department of Housing and Urban Development – Marcia Fudge (effective March 10, 2021)

Department of Education – Dr. Miguel Cardona (effective March 2, 2011)

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 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 Banking, Housing, and Urban Affairs

Senators Van Hollen, Brown, Garcia Announce Congressional Review Act Legislation to Repeal OCC Lending Rule

March 26, 2021

U.S. Senator Chris Van Hollen (D-MD), a member of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, Committee Chairman Sherrod Brown (D-OH), and Congressman Chuy Garcia (D-IL4) announced legislation to repeal the Trump Administration’s “True Lender Rule” through the use of the Congressional Review Act.

Senator Toomey Delivers Opening Statement at Banking Committee Hearing on COVID-19 Spending

March 26, 2021

U.S. Senator Pat Toomey (R-PA), Ranking Member of the Senate Committee on Banking, Housing, and Urban Affairs (Committee) delivered an opening statement at a hearing of the Committee.

Committee on Small Business and Entrepreneurship

U.S. House of Representatives

Committee on Small Business

Chairwoman Velázquez, Nine Committee Democrats Warn USPS of Negative Impacts of Ten-Year Plan on Small Firms

March 26, 2021

House Small Business Committee Chairwoman Nydia M. Velázquez (D-NY) led nine Committee Democrats in writing to Postmaster General Louis DeJoy regarding the potential impacts of his ten-year plan on small businesses.

Federal Agencies

Department of the Treasury

Federal Reserve Board

Federal Reserve Releases Discussion Paper: “Dynamic Econometrics in Action: A Biography of David F. Hendry”

March 26, 2021

The Board of Governors of the Federal Reserve System issued an International Finance Discussion Paper that reviews the contributions of David Hendry on the econometrics of empirical economic modeling, economic forecasting, econometrics software, substantive empirical economic model design, and economic policy.

Federal Deposit Insurance Corporation

FDIC Issues Clarification on its Rapid Phased Prototyping Initiative

March 26, 2021

The Federal Deposit Insurance Corporation (FDIC) provided information and clarification for FDIC-supervised financial institutions on the FDIC’s Rapid Phased Prototyping (RPP) initiative. The RPP initiative is a competition designed to accelerate the adoption of modern technological solutions that explore new ways to receive, manage, and analyze data from individual institutions, particularly community banks, without increasing compliance burdens.

Jelena McWilliams Delivers Remarks at the Women’s Economic Empowerment TechSprint and Conference

March 26, 2021

Federal Deposit Insurance Corporation Chairman Jelena McWilliams delivered remarks at the Women’s Economic Empowerment TechSprint and Conference. McWilliams discussed activities to promote innovation under four broad themes: Inclusion, Resilience, Amplification, and Protecting the Future.

Commodity Futures Trading Commission

Quintenz Delivers Statement on ErisX RSBIX NFL Contracts and Certain Event Contracts

March 26, 2021

Commissioner Brian D. Quintenz of the Commodity Futures Trading Commission delivered a statement on futures contracts issued by ErisX. In December 2020, ErisX filed a self-certification that their RSBIX NFL futures contracts involving the moneyline, point spread, and total points on NFL football games meet the requirements of the Commodity Exchange Act for a contract listed by a registered Designated Contract Market.

Financial Crimes Enforcement Network

Innovation Hours Report Highlights Program’s Impact and Outlines Its Role in Supporting FinCEN’s Future Innovation Efforts

March 26, 2021

The Financial Crimes Enforcement Network (FinCEN) issued a report on its Innovation Hours Program. The Innovation Hours Program launched nearly two years ago to shape and inform FinCEN’s ongoing engagement with innovators of compliance solutions related to anti-money laundering/countering the financing of terrorism.

FINRA

FINRA Issues 2021 Advisory Committee Overview and Engagement Notice

March 26, 2021

The Financial Industry Regulatory Authority (FINRA) issued a notice to encourage employees of member firms and other interested parties to become involved in FINRA committees that facilitate effective engagement with member firms. Interested individuals should use FINRA’s Engagement Portal to submit an online form to be considered for future committee vacancies.

National Credit Union Association

NCUA Board Extends Comment Period for Proposed CUSO Rule

March 26, 2021

The National Credit Union Association (NCUA) Board unanimously approved by notation vote a 30-day extension of the comment period for its proposed rule on credit union service organizations (CUSOs), Part 712. The proposed rule would (i) expand the list of permissible activities and services for CUSOs to include originating any type of loan that a federal credit union may originate and (ii) grant the NCUA Board additional flexibility to approve permissible activities and services.

Department of Housing and Urban Development/Federal Housing Administration

HUD Releases Report on Youth Homelessness

March 26, 2021

The U.S. Department of Housing and Urban Development (HUD) released a report on coordinated community approaches to preventing and ending youth homelessness. The report is titled "Evaluation of the HUD Youth Homelessness Demonstration Program: Early Implementation Report."

International

European Banking Authority

ESAs Publish Q&As on Cross-Sectoral Aspects of the Securitization Regulation

March 26, 2021

The Joint Committee of the European Supervisory Authorities published Questions and Answers (Q&As) on cross-sectoral aspects of the Securitization Regulation.

ESAs Publish Joint Opinion on Jurisdictional Scope under the Securitization Regulation

March 26, 2021

The European Supervisory Authorities published a Joint Opinion on the jurisdictional scope of the obligations of the non-EU parties to securitizations under the Securitization Regulation.

Bank of England

Tenreyro Delivers Speech on Responses to the Covid-19 pandemic: UK and US Experiences

March 26, 2021

Silvana Tenreyro, External Member of the Bank of England Monetary Policy Committee, delivered a speech looking at what has been done in the UK to support the economy and workers during the COVID-19 and how such measures compare to what has happened in the US.

Saunders Delivers Speech on Supply and Demand During and After the Pandemic

March 26, 2021

Michael Saunders, External Member of the Bank of England Monetary Policy Committee, delivered a speech about why it is difficult to measure the UK economy’s potential output at present. Saunders also looks at what this might imply for the level of spare capacity now and in the year ahead and what that might mean for monetary policy.

Bank of England Issues Working Paper on Forecasting UK Inflation Bottom Pp

March 26, 2021

The Bank of England issued a Staff Working Paper that forecasts CPI inflation in the United Kingdom up to one year ahead using a large set of monthly disaggregated CPI item series combined with a wide set of forecasting tools, including dimensionality reduction techniques, shrinkage methods and non-linear machine learning models.

FCA and PRA Issue Letter: ‘Transition from LIBOR to Risk Free Rates’

March 26, 2021

The Bank of England Prudential Regulation Authority and the Financial Conduct Authority issued a joint letter to business leaders about the preparations they should be making for the cessation of LIBOR.

Bank of England Prudential Regulation Authority

PRA Publishes PS5/21

March 26, 2021

The Bank of England Prudential Regulation Authority (PRA) published Policy Statement (PS) PS5/21 ‘Financial Service Compensation Scheme – Management Expenses Levy Limit 2021/22’ . The PS is relevant to all PRA-authorized firms and contains the final rules for the Financial Services Compensation Scheme (FSCS) Management Expenses Levy Limit (MELL) for 2021/22. The FSCS MELL applies for the financial year ending Thursday March 31, 2022.

Sixth meeting of the PRA and FCA Hold Sixth Meeting of Joint Climate Financial Risk Forum

March 26, 2021

The Bank of England Prudential Regulation Authority and the Financial Conduct Authority held the sixth meeting of the joint Climate Financial Risk Forum.

Bank of England and FCA Publish Findings on Open-Ended Investment Funds

March 26, 2021

The Bank of England (Bank) and Financial Conduct Authority published the findings of their joint survey of UK-authorized open-ended funds. The survey was conducted to inform the ongoing joint review by the Bank and the FCA on open-ended funds liquidity mismatch.

UK Financial Conduct Authority

FCA Publishes Feedback to Call for Input on Open Finance

March 26, 2021

The Financial Conduct Authority published a feedback statement to its Call for Input on open finance. Responses show that open finance could potentially offer significant benefits to consumers, including increased competition, improved advice and improved access to a wider and more innovative range of financial products and services.