In this issue...
The Senate passed a resolution by a 51-50 vote to repeal the CFPB's final arbitration rule, which bars class action waivers in consumer arbitration agreements. The Treasury and the OCC each released reports critical of the rule and the President is expected to sign the bill.
The SEC issued three no-action letters related to the EU's MiFID II's research provisions that help market participants comply with MiFID II ahead of the January 2018 implementation. The letters allow broker-dealers to temporarily receive research payments from money managers in hard dollars or from client research payment accounts; money managers to continue aggregating orders for mutual funds and other clients; and money managers to continue reliance on an existing safe harbor when paying broker-dealers for research and brokerage.
Federal banking agencies released answers to frequently asked questions on the liquidity coverage ratio (LCR) rule. The range of topics addressed include the treatment of various outflows, multicurrency deposit balances, and eligible high-quality liquid assets and monetization in securities lending transactions.
The OCC issued guidance on risk management principles for new, modified, or expanded products and services. OCC states the guidance is consistent with its support for responsible innovation.
A House Financial Services Committee continuation hearing on the data breach of a credit reporting agency heard testimony by state attorneys general and consumer advocates highlighting issues around consumers’ ability to freeze their accounts, breach notifications, and potential impacts from repeal of the CFPB’s arbitration rule.
The CFTC extended the implementation date of the new swap dealer de minimis threshold. The order establishes December 31, 2019 as the new date when the swap dealer de minimis threshold will be lowered to $3 billion from the current $8 billion.
The FRB has reopened the comment period for its proposed revision to FR Y-15, the Banking Organization Systemic Risk Report, and extended the proposed implementation date to March 31, 2018.
The Basel Committee issued Guidelines on identification and management of step-in risk, which aims to mitigate the systemic risks to banks from shadow banking entities.