Washington Report 360 | April 06, 2018 | KPMG | US

Washington Report 360 | April 06, 2018

Washington Report 360 | April 06, 2018

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Key Highlights

  • In line with current concerns over consumer data privacy protection, FINRA issued an investor alert on the risks of sharing personal financial account information with data aggregators that put all of an investor's financial data on one financial "dashboard."
  • Treasury released recommendations to modernize the Community Reinvestment Act, including changes to geographic assessment areas; examinations; and performance incentives.
  • CFPB Acting Director Mulvaney outlined his recommendations to Congress for statutory changes to the CFPB as part of the CFPB’s submission of its Semi-Annual Report.
  • The FRBNY launched three reference rates, including an alternative to LIBOR.
     

Financial services policy news

The U.S. Department of the Treasury released recommendations to modernize the Community Reinvestment Act, including recommendations to: update the definitions of geographic assessment areas; increase clarity and flexibility of CRA examinations; improve the examination process; and incorporate performance incentives.

The Federal Reserve Bank of New York began publishing three reference rates based on overnight repurchase agreement (repo) transactions collateralized by Treasury securities: the Secured Overnight Financing Rate (SOFR), the Broad General Collateral Rate, and the Tri-Party General Collateral Rate. The SOFR was recommended by the Alternative Reference Rates Committee as its alternative to the U.S. dollar LIBOR for use in certain new U.S. dollar derivatives and other financial contracts.

Federal Reserve Board Governor Lael Brainard provided an update on the Federal Reserve's financial stability agenda, including the interaction between assessing systemic financial vulnerabilities and prudential, macroprudential, and countercyclical policies.

The Basel Committee published a study on the range of practices that bank supervisors around the world have used to support early supervisory intervention.

Financial services legislative and regulatory news

Following on the FTC’s recent statement regarding consumer data privacy protection, FINRA issued an investor alert on the risks of sharing personal financial account information with data aggregators that put all of an investor's financial data on one financial "dashboard."

The CFPB published its Semi-Annual Report to Congress, which included Acting Director Mick Mulvaney’s four recommendations for statutory changes to the CFPB: subject the CFPB budget to Congressional appropriation; require legislative approval of major rules; ensure the Director answers to the President in the exercise of executive authority; and create an independent Inspector General for the CFPB. Acting Director Mulvaney will testify before the House Financial Services Committee next week.

The CFPB released its annual Consumer Response report highlighting that the top consumer complaint received by the CFPB in 2017 was related to credit or consumer reporting followed by complaints related to debt collection and mortgages.

The CFPB issued the eleventh in its series of Requests for Information, this time seeking input on the effectiveness and efficiency of its consumer financial education programs, including online tools, print publications, and community collaborations.

Federal bank regulators issued a final rule raising the threshold for commercial real estate transactions requiring an appraisal from $250,000 to $500,000; financial institutions can use an evaluation for transactions under the threshold.

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network published Frequently Asked Questions specific to the Customer Due Diligence rule that will become effective May 11, 2018.

H.R. 4790, the Volcker Rule Regulatory Harmonization Act, which would give the Federal Reserve exclusive rulemaking authority for the Volcker Rule and exempt certain community banks from that rule, will be taken up by the House Committee on Rules early next week.

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