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Daily Financial Regulation Update -- Thursday, September 30, 2021

September 30, 2021

By FedACTion Task Force

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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 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.

U.S. House of Representatives

Committee on Financial Services

The Future of Banking: How Consolidation, Nonbank Competition, and Technology are Reshaping the Banking System

September 29, 2021

The House Committee on Financial Services Subcommittee on Consumer Protection and Financial Institutions held a meeting titled, "The Future of Banking: How Consolidation, Nonbank Competition, and Technology are Reshaping the Banking System."

Federal Agencies

U.S. Department of the Treasury

Readout: Secretary of the Treasury Janet L. Yellen's Virtual Meeting with G7 Finance Ministers

September 29, 2021

U.S. Secretary of the Treasury Janet L. Yellen and G7 finance ministers held a meeting to convene on the ongoing efforts to improve the international tax system to make it equitable and equipped to meet the needs of the 21st century global economy.

Federal Reserve Bank of New York

Blog Post: What Quantity of Reserves Is Sufficient?

September 29, 2021

The Federal Reserve Bank of New York published a Liberty Street Economics blog titled, "What Quantity of Reserves is Sufficient?"

Securities and Exchange Commission

SEC Proposes to Enhance Proxy Voting Disclosure by Investment Funds and Require Disclosure of "Say-on-Pay" Votes for Institutional Investment Managers

September 29, 2021

The Securities and Exchange Commission proposed amendments to Form N-PX to enhance the information mutual funds, exchange-traded funds and certain other funds report about their proxy votes.

Prepared Remarks: SEC Chair Gary Gensler Before the Future of Asset Management North America Conference

September 29, 2021

Securities and Exchange Commission (SEC) Chair Gary Gensler gave prepared remarks before the Future of Asset Management North America Conference regarding the SEC's views on asset management.

Commodity Futures Trading Commission

Letter: CFTC Staff Issues Advisory to Clarify Activities that May Trigger the Swap Execution Facility Registration Requirement

September 29, 2021

The Commodity Futures Trading Commission's (CFTC) Division of Market Oversight issued a staff advisory clarifying certain trading activities may trigger compliance with the swap execution facility registration requirement in the Commodity Exchange Act and CFTC regulations.

Consumer Financial Protection Bureau

CFPB Report: Declines in Credit Card Debt, New Applications and Increases in Digital Engagement in 2020

September 29, 2021

The Consumer Financial Protection Bureau released its fifth biennial Consumer Credit Card Market Report to Congress, finding that the market's growth over the last few years reversed course in 2020. In reviewing the market for potential consumer harm, the report presents the latest research on consumer card use, cost and availability. From a 2019 peak of $926 billion, credit card debt fell to $811 billion by the second quarter of 2020, the largest six-month decline on record, before reaching $825 billion by the end of the year.

FINRA

Report: FINRA Board of Governors Meeting – September 2021

September 29, 2021

The Financial Industry Regulatory Authority Board of Governors met on September 23-24, and approved a proposal to establish a modest fee for individuals who choose to complete continuing education to remain qualified for up to five years following the termination of the individual's registration.

Bank Policy Institute

Statement: Industrial Loan Company Loophole Necessitates Congressional Scrutiny and Legislative Solution

September 29, 2021

The Bank Policy Institute, Center for Responsible Lending and the Independent Community Bankers of America issued a joint statement prior to the House Financial Services Subcommittee on Consumer Protection and Financial Institutions meeting to discuss the "The Future of Banking," including whether to prevent companies that are not banks from using an industrial loan company charter to expand their business into financial services without meeting the full slate of safeguards and oversight that applies to bank holding companies.

International

European Banking Authority

Report: EBA Publishes Its Regular Monitoring Report on Basel III Full Implementation in the EU

September 29, 2021

The European Banking Authority (EBA) published its regular monitoring report of the full implementation, in 2028, of the final Basel III reforms in the EU. According to this assessment, which is carried out using the same methodology as the one applied by the Basel Committee on Banking Supervision, the full Basel III implementation would result in an average increase of 13.7% on the current Tier 1 minimum required capital of EU banks. To comply with the new framework, EU banks would need EUR 3.1 billion of additional Tier 1 capital. The overall impact reflects the economic impact of the COVID-19 pandemic on participating banks that materialized up to December 2020.

Bank of England

Paper: Derivatives Clearing Obligation – Introduction of Contracts Referencing TONA: Amendment to BTS 2015/2205

September 29, 2021

The Bank of England (BoE) published a consultation paper, setting out the BoE's proposal to add Overnight Index Swaps that reference the Tokyo Overnight Average Rate to the scope of contracts which are subject to the derivatives clearing obligation.

Paper: Derivatives Clearing Obligation – Modifications to Reflect Interest Rate Benchmark Reform: Amendments to BTS 2015/2205

September 29, 2021

The Bank of England (BoE) published a policy statement, containing the BoE's final policy on the proposal to modify the scope of contracts subject to the derivatives clearing obligation, which was set out in the consultation paper published in May titled, "Derivatives Clearing Obligation – Modifications to Reflect Interest Rate Benchmark Reform: Amendments to BTS 2015/2205."

One Year Left to Spend Paper £20 and £50 Banknotes

September 29, 2021

The Bank of England will be withdrawing legal tender status of the paper £20 and £50 notes after September 30, 2022.

Membership of CBDC Engagement and Technology Forums

September 29, 2021

The Bank of England and the HM Treasury announced the membership of the central bank digital currency Engagement and Technology Forums.

UK Financial Conduct Authority

Further Arrangements for the Orderly Wind-Down of LIBOR at End of 2021

September 29, 2021

The sterling, Japanese yen, Swiss franc, and euro LIBOR panels are ceasing on December 31, 2021. The Financial Conduct Authority is confirming that to avoid disruption to legacy contracts that reference the 1-, 3- and 6-month sterling and Japanese yen LIBOR settings, it will require the LIBOR benchmark administrator to publish these settings under a 'synthetic' methodology, based on term risk-free rates, for the duration of 2022. These 6 LIBOR settings will be available only for use in some legacy contracts, and are not for use in new business.

Administration Changes

Appointments/Confirmation Hearings

U.S. 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

U.S. Department of Housing and Urban Development - Marcia Fudge (effective March 10, 2021)

Federal Housing Finance Agency

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

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