US Financial Regulatory Week Ahead

July 24 - 28, 2023

August is right around the corner, and Washington is preparing to disappear for the month for vacations.  Congress will be out of session for almost the entire month, and most regulatory agencies traditionally take advantage of the quiet to also head to the beach.  But before it all goes quiet, financial regulators have scheduled a busy week ahead. 

The week's big event is Thursday, when the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve are expected to vote on a draft requiring higher bank capital standards. 

Both the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission have open meetings this week.  The SEC will vote on four cyber-related rules, and the CFTC will vote on four new swap regulatory rules.

Also, the Financial Stability Oversight Council (FSOC) meets Friday to consider several issues, including the transition from LIBOR, climate-related regulations, and updates on the mortgage market.  

Congress is relatively quiet, with only one financial service-related hearing in the Senate Banking Committee looking at banking and other financial services fees.

Below is what else is happening in the US regulatory world next week:

U.S. Congressional Hearings

• Wednesday, July 26, 2023- 9:30 a.m. – The Senate Banking, Housing, and Urban Affairs Financial Institutions and Consumer Protection Subcommittee holds a hearing on "Taking Account of Fees and Tactics Impacting Americans' Wallets."

US Regulatory Meetings

• Sunday to Tuesday – July 23- July 25: A delegation of the EU Parliament’s Economic and Monetary Affairs Committee will travel to the US for meetings with US financial regulators.  They are expected to discuss inflation, support for Ukraine and financial sanctions on Russia, digital finance, sustainable finance, banking and capital markets supervision, cryptocurrencies, and competition policy.

• Tuesday, July 25 – 11:00 a.m. – The US Securities and Exchange Commission (SEC), the North American Securities Administrators Association (NASAA), and the Wisconsin Department of Financial Institutions (DFI) are holding a joint public roundtable at the DFI Headquarters in Madison, Wisconsin.  SEC Chair Gary Gensler will give pre-recorded remarks, and Commissioner Mark Uyeda will be in attendance. The roundtable will be webcast on SEC.gov.

  The event will consist of a few key sessions:

  • Investor roundtable focused on retail investor issues, where investors will engage in a moderated discussion with the Investor Advocate and the WI DFI Securities Administrator

  • Public roundtable webcast and investor case studies, where retail investors, investigators, and regulators will share experiences of securities frauds and engage in discussions related to identifying frauds and avoiding suspicious investments.

  • Securities Investor Protection Corporation (SIPC) and the Canadian Investor Protection Fund (CIPF)-moderated discussions on investor protection during periods of firm insolvency.

  • Stakeholder discussion with the SEC’s Retail Strategy Task Force on retail investor frauds, deceptive practices, and what the future of investor protection looks like

• Tuesday, July 25 – 11:00 a.m. – The Consumer Financial Protection Bureau (CFPB) holds a “REgCast” to provide information to help financial institutions determine whether they are covered by financial institutions for purposes of the small business lending rule.  To watch the event, you can register HERE.

• Wednesday, July 26 – 10:00 a.m. – The US Securities and Exchange Commission will hold an open meeting.  The three agenda items that will be considered are (the full agenda is HERE):

  • Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure

  • Conflicts of Interest Associated with the Use of Predictive Data Analytics by Broker-Dealers and Investment Advisers

  • Exemption for Certain Investment Advisers Operating Through the Internet  

• Wednesday, July 26, 2023- 2:00 p.m. -- Federal Reserve Board Chairman Jerome Powell holds a news conference after a Federal Open Market Committee meeting.

• Tuesday, July 26, 2023 - 9:30 a.m. – The Commodities Futures Trading Commission will hold an Open Meeting  to consider the following:

  • Final Rule: Reporting and Information Requirements for Derivatives Clearing Organizations

  • Proposed Rule: Swap Confirmation Requirements for Swap Execution Facilities

  • Proposed Rule: Amendments to Provisions Common to Registered Entities

  • Proposed Rule: Amendments to Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants (Seeded Funds and Money Market Funds)

• Wednesday, July 26 - 3:30 p.m. – The US Treasury Department holds a meeting of the Advisory Committee on Risk-Sharing Mechanisms to discuss the role of nongovernmental mechanisms in supporting the terrorism risk insurance market and related to the Terrorism Risk Insurance Program.

• Thursday, July 27 – The US Federal Reserve Board and the FDIC Board are both expected to vote on proposed higher capital requirements.  It is expected it will apply to banks with more than $100 billion in assets and would implement the so-called Basel III proposal finalized in 2017.

• Thursday, July 27 – 2:00 p.m. – The US Securities and Exchange Commission holds a Closed Meeting.

• Friday, July 28, 2023: The Financial Stability Oversight Council (FSOC) will meet at the US Treasury Department to consider a number of issues.  These include:

  • An update on the work of the Council’s Nonbank Mortgage Servicing Task Force;

  • An update on the Council’s Climate-related Financial Risk Committee and an update on developments in the banking sector.*  

  • An update on the Council’s Climate-related Financial Risk Committee and;

  • An update on the transition from LIBOR.