PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Thursday, June 3, 2021

June 03, 2021

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”), 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.

Federal Agencies

Federal Reserve Board

Federal Reserve Board Invites Public Comment on Proposed FedNow Service

June 1, 2021

The Board of Governors of the Federal Reserve System invited comment on a proposed rule to govern funds transfers over the Federal Reserve Banks’ FedNowSMService. The FedNow Service is a new 24x7x365 service that will support real-time payments in the United States that is targeted to commence operations in 2023.

Federal Reserve Board Issues Final Rule Amending Regulation D with Regard to Interest on Reserve Balances held at Federal Reserve Banks

June 2, 2021

The Board of Governors of the Federal Reserve System announced the approval of a final rule amending Regulation D to eliminate references to an interest on required reserves rate and to replace them with a single interest on reserve balances rate. The final rule also simplifies the formula used to calculate the amount of interest to be paid on such balances and makes other minor conforming amendments. The final rule takes effect on July 29, 2021.

Federal Reserve Bank of New York

ICMA’s Official Sector Panel on the Transition to Risk Free Rates

June 2, 2021

The Federal Reserve Bank of New York released a recording of the International Capital Market Association’s official sector panel on the remaining challenges in the transition from LIBOR/interbank offered rates to risk-free rates. The event presented an opportunity to hear from the UK Financial Conduct Authority, the Federal Reserve Bank of New York, the Swiss National Bank, and the European Central Bank.

Event: Capital Quest: Connecting Capital to Communities

June 3, 2021

The Federal Reserve Bank of New York’s (New York Fed) Community Development team, in partnership with the U.S. Impact Investing Alliance, is hosting a virtual event on Thursday, June 3, 2021 at 1:00 p.m. Eastern focused on the expanding pool of impact investing funders, how new sources of investment can strengthen the low- and moderate-income communities hardest hit by the COVID-19 pandemic, and the New York Fed’s plans to connect communities with funds.

Blog: Sophisticated and Unsophisticated Runs

June 2, 2021

The Federal Reserve Bank of New York’s Liberty Street Economics blog released a post titled “Sophisticated and Unsophisticated Runs” in which the authors examined the difference in outflows between institutional and retail money market funds at the outset of the pandemic.

National Credit Union Administration

CDRLF Funds Have Positive Impact on Communities

June 01, 2021

The National Credit Union Administration (NCUA) released its Community Development Revolving Loan Fund (CDRLF) report to Congress, highlighting the CDRLF’s significant, positive impact on low-income credit unions, their members, and communities across the country. NCUA Chairman Todd M. Harper also requested that Congress consider increasing the CDRLF’s appropriations in 2022.

Equal Credit Opportunity Act (Regulation B)

June 1, 2021

On March 16, 2021, the Consumer Finance Protection Bureau published in the Federal Register an interpretive rule clarifying that the prohibition against sex discrimination in the Equal Credit Opportunity Act, as implemented by Regulation B, encompasses discrimination based on sexual orientation and gender identity discrimination. The interpretive rule also covers discrimination based on actual or perceived nonconformity with sex- or gender-based stereotypes, and discrimination based on an applicant’s associations. The interpretive rule became effective on March 16, 2021.


European Commission

NextGenerationEU: European Commission to Issue around €80 Billion in Long-Term Bonds as part of Funding Plan for 2021

June 1, 2021

Following the approval of the Own Resources Decision by all European Union (EU) Member States, the European Commission (Commission) announced that it can now start raising resources to finance Europe's recovery through NextGenerationEU. The Commission announced its estimates to issue around €80 billion of long-term bonds in 2021, to be topped up by tens of billions of euros of short-term EU-Bills to cover the remaining financing requirements.

Speech by President von der Leyen at the High-Level Opening Session of the 2021 Digital Assembly, “Leading the Digital Decade”

June 1, 2021

European Commission President Ursula von der Leyen gave a speech at the high-level opening session of the 2021 Digital Assembly, “Leading the Digital Decade.”

UK Financial Conduct Authority
UK Prudential Regulation Authority

FCA and PRA Joint Letter on Delivery versus Payments Clients

June 2, 2021

The U.K.’s Financial Conduct Authority and Prudential Regulation Authority have sent a so-called “Dear Chief Risk Officer” letter to firms which shares their observations on good practices related to monitoring and mitigating counterparty credit risks in relation to Delivery versus Payment clients that the agencies encourage firms incorporate within their control frameworks.

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 (effective April 17, 2021)

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

Commodity Futures Trade Commission

Financial Crimes Enforcement Network

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)

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