Washington Report 360 | April 13, 2018 | KPMG | US
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Washington Report 360 | April 13, 2018

Washington Report 360 | April 13, 2018

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Key Highlights

  • The Federal Reserve and the OCC have proposed rules to tailor certain regulations for large institutions to be more firm-specific and risk-sensitive, including proposals to:
  • Integrate CCAR and the capital buffer requirement through a "stress capital buffer.
  • Modify the leverage ratio requirements for GSIBs and their insured depository subsidiaries and replace the fixed leverage standard.
  • Hearings in House and Senate highlighted the potential need for legislation and/or regulation to address consumer data privacy issues, including delineation of how companies can collect, share, and use consumer data.
  • The House of Representative continues to advance bipartisan financial services regulatory reform bills.
  • The CFPB released the twelfth in a series of Requests for Information, this time seeking comment on its handling of consumer complaints and inquiries.
     

Financial services policy news

The Committee on Payments and Market Infrastructures (CPMI) and the IOSCO issued two new reports:

  • A report on the Framework for supervisory stress testing of central counterparties (CCPs) to help authorities better understand the scope and magnitude of the interdependencies between markets, CCPs, and other entities.
  • A report that provides technical guidance to authorities on harmonizing data elements (other than UTI and UPI) for OTC derivative transactions reported to trade repositories.

The IOSCO published recommendations for improving the transparency of secondary corporate bond market information available to both regulators and the public.

Financial services legislative and regulatory news

The Federal Reserve Board proposed new firm-specific and risk-sensitive capital requirements for large banks through a "stress capital buffer.” The proposal would apply to BHCs with total consolidated assets of $50 billion or more and intermediate holding companies of foreign banking organizations, and would combine the quantitative assessment of the CCAR and stress test rules with the buffer requirements of the regulatory capital rule.

The Federal Reserve Board and the OCC jointly proposed changes to the enhanced supplementary leverage ratio requirements for global systemically important banking organizations (GSIBs) and their OCC-regulated insured depository institutions that would replace the fixed leverage standard with one based on a firm's risk-based capital surcharge, and make conforming changes to the GSIB leverage buffer of the Federal Reserve’s TLAC and long-term debt requirements.

Hearings in the House and Senate highlighted the potential need for legislation and/or regulation to address consumer data privacy issues, including delineation of how companies can collect, share, and use consumer data. News reports covered many of the options discussed.

The House of Representatives passed two bills on financial services regulation:

  • H.R. 4061, the Financial Stability Oversight Council Improvement Act of 2017.
  • H.R. 4293, the Stress Test Improvement Act of 2017.

The CFPB released the twelfth in a series of Requests for Information, this time seeking comment on the handling of consumer complaints and inquiries.

FINRA proposed to adopt rules relating to the establishment of a second Trade Reporting Facility to be operated in conjunction with Nasdaq, Inc.

The FFIEC members issued a joint statement on factors financial institutions should consider when determining whether to use cyber insurance as a component of their risk management programs.

The SEC has scheduled discussion of proposals related to the fiduciary duties of financial professionals, including the standards of conduct for broker-dealers and investment advisors, at an open meeting next week.


 

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