On November 15, the Fed, the OCC and the FDIC released final revisions to “Interagency Questions and Answers Regarding Community Reinvestment,” which provide additional guidance to financial institutions and the public on the agencies’ Community Reinvestment Act regulations. Joint Release. Q&A.
On November 21, the FDIC issued final supervisory guidance to FDIC-supervised financial institutions with respect to the risks imposed by certain deposit advance products. The FDIC encourages banks to: (i) continue to offer these products, consistent with safety and soundness and other supervisory considerations and (ii) develop new or innovative programs to effectively meet the need for small-dollar credit. FDIC Release. Final Guidance.
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On November 14, the FCA published the final notice it has issued to Rahul Shah. The FCA’s statement is that Mr. Shah encouraged another person to engage in behavior which, had Mr. Shah engaged in that same behavior, would amount to market abuse (insider dealing) as per section 118(2) of the Financial Services and Markets Act (FSMA).
Mr. Shah has been prohibited by an FCA order from performing any function in relation to any regulated activities carried on by any authorized or exempt persons or exempt professional firm. In light of his financial position, no financial penalty was imposed on Mr. Shah.
The prohibition on Mr. Shah arises from the fact that he had agreed, while a broker, to be made an insider by a financial advisor acting on behalf of Vyke Communications plc. Final notice.
On November 7, the European Central Bank (ECB) updated its webpage on building a banking union to reflect the coming into force of the inter-institutional agreement (IIA). The ECB has agreed with the European Parliament on cooperation on procedures related to the single supervisory mechanism (SSM). The ECB also published a copy of the IIA, which will also be published in the Official Journal of the EU.
On November 12, OCC published standards governing the use of independent consultants in enforcement actions involving significant violations of law. The standards describe the criteria the OCC will use in determining whether to require a national bank or federal savings association to retain a consultant, as well as the institution’s obligations to ensure the consultant has sufficient independence and qualifications. Among other issues, the standards describe the process for reviewing consultant qualifications and the contractual terms for the engagement, as well as the appropriate performance oversight. Press Release. Guidance.
On November 12, FDIC released the economic scenarios that will be used by financial institutions with total assets of more than $10 billion for stress tests required under the Dodd-Frank Act. Press Release.
On November 14, CFTC issued advisory on the applicability of Dodd-Frank transaction-level requirements to swaps between non-U.S. swap dealers (SDs) (whether or not an affiliate of a U.S. person) and non-U.S. persons if the swap is arranged, negotiated or executed by a non-U.S. SD located in the U.S. Advisory.