OCC Urges Research On The Implications Of Financial Technology For The Banking Sector | Goodwin

Regulatory developments

OCC urges research on the implications of financial technology for the banking sector

On July 25, the OCC is seeking academic and policy-focused research on the impact that fintech and non-banking entities have on the banking sector and lending, borrowing and payment services markets until August 21, 2022. will then invite the authors of selected articles to present them to OCC staff and guests at OCC Headquarters in Washington, DC, which will be held November 7-8, 2022. These presentations are intended to serve as a platform for academic experts. , regulatory and other sectors to discuss the research and expose how the banking system, with a focus on community banks, will leverage the technology associated with fintech and, in turn, respond to the influx of new banking service providers. The Call for Papers defines the scholarship requested; interested parties are invited to send documents to [email protected]

CFTC extends public comment period on requesting information on climate-related financial risk

On July 18, the CFTC extended the deadline for the public comment period on a climate-related financial risk RFI from August 7 to October 7. RFI seeks public comment to better inform CFTC’s understanding and oversight of climate-related financial risk, which refers to physical risks characterized by damage caused by acute climate-related events and transition risks characterized by stress to institutions or sectors financial resulting from changes in policies, regulations, customer and business preferences, etc. Climate-related financial risk may directly or indirectly impact entities, registrants and other market participants registered with the CFTC, as well as the underlying derivative and commodity markets, including causing increased market volatility, disruptions to historical price correlations and challenges to existing risk management assumptions. RFI also seeks answers to specific questions about data, scenario analysis and stress testing, risk management, disclosure, product innovation, voluntary carbon markets, digital assets, greenwashing, financially vulnerable communities, and public-private partnerships and involvement.

“It is crucial that the Commission proactively understands how climate-related financial risk can affect commodity and derivative markets, as well as our registered entities, registrants and other market participants as they increasingly rely on markets. derivatives to manage their physical activities induced by climate change and transition risk “.
– CFTC president Rostin Behnam

CFPB publishes new frequently asked questions on debt collection

On July 27, the CFPB published four new topics in its FAQ on debt collection rules: (1) Prohibitions on third party communications; (2) Electronic communication; (3) Electronic communication: notice of waiver; and (4) Unusual or inappropriate times or places. Among the new answers to the frequently asked questions, the CFPB confirms that nothing in the debt collection rule requires a debt collector to communicate electronically with consumers, that consumers can restrict the collector’s communications through specific methods or means, and that all electronic communications or attempts to communicate electronically with a consumer in connection with the collection of a credit must contain a clear and conspicuous waiver notice with a simple method (eg hyperlink, sms “STOP” or similar language) by which the consumer can renounce to further electronic communications by the collector debtor at the specific electronic medium on which the communication was sent.

Notice of regulatory proposal on valuations, amendments to incorporate the updating of accounting standards for the restructuring of problematic debt

On July 20, the FDIC issued a regulatory proposal notice (the Proposal) in Federal register incorporate up-to-date accounting principles into the risk-based deposit insurance valuation system. The proposed regulation applies to all large and highly complex insured depository institutions. The proposal would amend the valuation regulation to expressly include the new accounting term, “changes to borrowers in financial distress (the Term),” recently introduced by the Financial Accounting Standards Board (FASB), to replace troubled debt restructuring (TDR) in the underperforming asset ratio and higher risk asset ratio in scorecards for large and highly complex banks. In addition, the FDIC Council and other Federal Council for Examining Financial Institutions are planning to revise the Call Report Forms and Instructions to include the Term as it will be defined in the Glossary of Call Report Instructions.

The proposal will not affect the deposit insurance rating system for FDIC-insured and / or FDIC-supervised institutions with less than $ 10 billion in total consolidated assets.

FDIC updates guidelines regarding termination of termination and termination and consent orders

On July 25, the FDIC revised the guidelines regarding termination of consent orders and termination and termination orders under Section 8 (b) of the Federal Deposit Insurance Act (FDI). Under the FDI Act, the FDIC has the power to issue termination and termination orders when an insured depository institution is conducting business in an unsafe or incorrect manner, or is in violation of a law, regulation or agreement with the FDIC. Under the new guidance in the Handbook of Enforcement Actions, cessation and desistance orders can be revoked when (1) the entity has achieved full compliance with the order and corrected the violations that led to the order; (2) the provisions with which the institution does not comply have ceased to be relevant to the circumstances of the institution; or (3) new or revised formal actions have been taken against the institution by the FDIC. The Enforcement Action Manual guides FDIC staff in their interactions with all financial institutions controlled by the FDIC.

Litigation and enforcement

SEC Supports Insider Trading of “Crypto Asset Securities”; The case has significant implications for the digital asset industry

On July 21, the SEC accused three individuals of insider trading in digital assets via an exchange scheme ahead of multiple announcements regarding crypto assets made available on a US-based digital asset exchange in which an individual was a former product. manager. In the complaint, the SEC identifies nine “cryptocurrency stocks” (the first time the agency used this term) that the agency claims are stocks. The SEC also claims that people orchestrated the program more broadly on at least 25 digital assets – 16 of which have not been identified – making illicit profits in excess of $ 1.1 million.

Read the customer notice to learn more about the case and its implications.

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