In this issue...
FINRA released its 2018 Regulatory and Examination Priorities Letter, which covers fraud; high-risk firms and brokers; operational and financial risks, including cybersecurity; sales practices, including suitability and cryptocurrencies; market integrity, including best execution; and new rules, including the financial exploitation of specified adults and FinCEN’s customer due diligence rule.
The FSB published its implementation plan for the unique transaction identifier (UTI) for over-the-counter derivative transactions, recommending that jurisdictions implement the UTI before 2021; the CPMI and IOSCO will undertake the governance functions.
A U.S. District Court denied a request for a preliminary injunction from CFPB deputy director Leandra English to stop Mick Mulvaney from heading the CFPB.
The Federal Reserve requested comment on proposed guidance to clarify its supervisory expectations related to risk management for large financial institutions, including core principles for effective senior management, business lines management, and independent risk management and controls.
FINRA requested comment on proposed amendments to its Rule 4521, which would require specified firms to notify FINRA within 48 hours after certain events that may signal an adverse change in liquidity risk. FINRA is also proposing to require certain firms to file a new Supplemental Liquidity Schedule with their FOCUS reports.
The SEC issued final rules to amend the Investment Advisors Act's rule that defines a venture capital fund and the rule that implements the private fund adviser exemption to reflect changes made by the FAST Act related to "small business investment companies." The SEC also issued a final rule to provide that certain communications involving security-based swaps will not be deemed to constitute "offers."
Senators Warren and Warner introduced a bill to give the FTC more direct supervisory authority over data security at credit reporting agencies and impose mandatory penalties on them for breaches of consumer personal data; increased penalties would be imposed for inadequate cybersecurity or failure to timely notify the FTC of a breach.
New reports suggest that the Administration plans to propose revisions to the implementing regulations of the Community Reinvestment Act to make the CRA “more transparent, modern, and consistent;” revisions could include the addition of small-business loans in the “community development” category.