Regulations come under review as memories fade

From: Pensions & Investments

BY HAZEL BRADFORD

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Finalizing updates

Five agencies are finalizing updates to the Volcker rule provision of Dodd-Frank, which prohibits federally backed financial institutions from engaging in proprietary trading or having interests in private equity or hedge funds. In June, the three Republican SEC commissioners, including Chairman Jay Clayton, voted to proceed with changes that include tailoring rules to a bank’s size, instead of using a one-size-fits-all approach, and clarifying exemptions for banks’ proprietary trading activity.

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Treasury Releases Report on Nonbank Institutions, Fintech, and Innovation

From: National Law Review

ARTICLE BY Weiss Nusraty David A. Stein | Covington & Burling LLP

On July 31, 2018, the U.S. Department of the Treasury released a reportidentifying numerous recommendations intended to promote constructive activities by nonbank financial institutions, embrace financial technology (“fintech”), and encourage innovation.

This is the fourth and final report issued by Treasury pursuant to Executive Order 13772, which established certain Core Principles designed to inform the manner in which the Trump Administration regulates the U.S. financial system.  Among other things, the Core Principles include:  (i) empower Americans to make independent financial decisions and informed choices; (ii) prevent taxpayer-funded bailouts; (iii) foster economic growth and vibrant financial markets through more rigorous regulatory impact analysis; (iv) make regulation efficient, effective, and appropriately tailored; and (v) restore public accountability within federal financial regulatory agencies and rationalize the federal financial regulatory framework.

In data dispute with Capital One, Plaid stands alone

Editor’s Note: Cross-posted from the FISMA Focus/Regulatory Cybersecurity Forum.

From: American Banker

By Nathan DiCamillo

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“CapOne is a leading bank that is highly concerned about its customers’ data,” said Steve Smith, CEO of the data aggregator Finicity. “If they take steps to secure their customers’ data and other aggregators have continued access to that data, then you have to ask yourself what’s really going on there. Aggregators don’t use the same methodology across the board.”

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Guernsey: A laboratory of innovation

From: Institutional Asset Manager

By James William

The funds sector has matured and developed into a more sophisticated market than it was 10 years ago. Technology advances and product innovation in new asset classes has deepened the funds industry, creating more complexity as a result. At the same time, over the last decade, demands on jurisdictions have risen in terms of the level of support that needs to be provided, in terms of substance and effective oversight. Guernsey has always been cognisant of this and has evolved in step with those changing times.

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US Regulator Asks to Be Informed if Member Businesses Use Cryptocurrency

From: Finance Magnates

Relevant activities include mining and acceptance of cryptocurrency from customers.

The Financial Industry Regulatory Authority, a self-regulatory body of the American financial industry that is subordinate to the Securities and Exchange Commission, has published a notice encouraging its member firms to notify it if they engage in or intend to engage in any activities related to cryptocurrency.

FINRA regulates trading in financial derivatives such as securities, futures, options, and so on. Finance companies in the US are required to be regulated; FINRA is one of the options.

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