May 26, 2017

An inside look at SIFMA's legislative and regulatory priorities as well as current developments in Washington, D.C.

 

SIFMA News

 

SIFMA Disappointed in DOL Decision Not to Delay Fiduciary Rule
SIFMA expressed disappointment that the Department of Labor has chosen not to further delay the fiduciary rule beyond June 9, 2017, but appreciates Secretary Acosta's recognition of the rule's negative impact and his desire to seek public input. “SIFMA has long-supported the creation of a best interest standard for brokers who provide personalized investment advice, and we continue to believe that the SEC is the appropriate regulator to do so,” said president and CEO Kenneth E. Bentsen, Jr. in a statement. “We hope that upon the Department’s completion of its wholesale rule review, they will conclude, as we believe the evidence clearly shows, that dramatic and fundamental changes are appropriate and necessary.”
Press Release
DOL Fiduciary Rule Resource Center

 

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HEARING SUMMARIES

 

Chairman Hensarling Talks CHOICE Act at AEI Event – On May 23, House Financial Services Chairman Jeb Hensarling (R-Texas) spoke at the American Enterprise Institute (AEI) with Peter Wallison about the Financial CHOICE Act, a piece a legislation that he has proposed in response to the Dodd-Frank Act. During the event, he discussed how the CHOICE Act would ease regulatory burdens on community banks, affect the Volcker Rule, Orderly Liquidation Authority, and the Consumer Financial Protection Bureau, and create an environment that holds financial institutions accountable, protects consumers, and increases economic growth. Read More

House Ways and Means Committee Holds a Hearing on the President’s FY2018 Budget –On May 24, the House Ways and Means Committee held a hearing on President Trump’s Fiscal Year 2018 Budget with Treasury Secretary Steven Mnuchin. Rep. Dave Reichert (R-Wash.) asked for the Administration’s views on temporary vs. permanent comprehensive tax reform. Mnuchin stressed that his preference is permanent over temporary, but added that temporary is “better than nothing.” Rep. Pat Tiberi (R-Ohio) expressed his concern with the border adjustment tax (BAT) proposal and its impact on consumers and workers. Mnuchin replied that he has met with Chairman Kevin Brady (R-Texas) almost weekly since taking office and that while he has some concerns with the BAT, he is open to potential changes Brady may consider. He later added that many countries use both a value-added tax (VAT) system and corporate tax in conjunction. Read More

Senate Finance Committee Holds a Hearing on the President’s FY2018 Budget and Tax Reform  On May 25, the Senate Finance Committee held a hearing with Treasury Secretary Mnuchin to discuss President Trump’s FY18 budget, as well as the administration’s plans for tax reform. Mnuchin defended the President’s budget and its cuts to discretionary programs and entitlements. Mnuchin said that the administration was exploring all possible options for tax reform, including a reworked Border Adjustability Tax, as well as alterations to certain deductions. Read More

 

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Legislative & Regulatory ActiVITY

 

May 19

Senators Patty Murray (D-DC), Elizabeth Warren (D-MA) and Cory Booker (D-NJ) sent a letter to Labor Secretary Alexander Acosta urging him not to delay the DOL Fiduciary Rule.

The Federal Reserve Bank of Philadelphia's Economic Research Department released an issue of Economic Insights examining tax rate policy and income inequality, stock values and research updates.

The Federal Reserve Bank of St. Louis released President and CEO James Bullard's presentation entitled "Recent Developments in U.S. Monetary Policy " delivered at the Association for Corporate Growth Monthly Breakfast Meeting at the Olin Business School at Washington University in St. Louis, Missouri.

The Federal Reserve Bank of Richmond issued a press release announcing that Chris Murphy was named Assistant Vice President with responsibility for the government affairs program, effective May 15, 2017.

The Congressional Budget Office released a cost estimate on H.R.10, The Financial CHOICE Act of 2017, which would amend the Dodd-Frank Wall Street Reform and Consumer Protection Act and other laws governing regulation of the financial industry.

May 22

The CFTC released a Final Rule on Amendments to the Whistleblower Awards Process, which strengthens CFTC anti-retaliation protections for whistleblowers and enhances the process for reviewing whistleblower claims. The Final Rule is effective 60 days after publication in the Federal Register.

The Federal Reserve Bank of New York published a Liberty Street Economics blog post entitled "Measuring Trend Inflation with the Underlying Inflation Gauge."

The SEC published in the Federal Register an Order Granting Approval of a Proposed Rule Change Consisting of Proposed Amendments to MSRB Rule G-3 (Professional Qualification Requirements) and G-8 (Books and Records), To Establish Continuing Education Requirements for Municipal Advisors and Accompanying Recordkeeping Requirements.

May 23
President Donald J. Trump released the Fiscal Year 2018 Budget of the U.S. Government.

The Senate Banking Committee held a hearing to vote on the nominations of Sigal Mandelker to be Under Secretary for Terrorism and Financial Crimes, Mira Radielovic Ricardel to be Under Secretary for Export Administration, U.S. Department of Commerce, Marshall Billingslea to be Assistant Secretary for Terrorist Financing, U.S. Department of the Treasury and Heath P. Tarbert to be Assistant Secretary, U.S. Department of the Treasury.

The MSRB and SEC announced that they will hold a joint educational webinar on June 15, 2017 at 3:00 p.m. to provide information on signing up for and preparing to take the MSRB's Municipal Advisor Representative Qualification Examination (Series 50 exam), and fulfilling municipal advisor firms' SEC registration obligations.

The CFTC released a Final Rule on Recordkeeping. The Final Rule is effective 90 days after publication in the Federal Register.

The CFTC released its Budget Request for Fiscal Year 2018.

The Department of Housing and Urban Development released its Fiscal Year 2018 Proposed Budget.

Secretary of Labor R. Alexander Acosta released an Op-Ed in the Wall Street Journal entitled "Deregulators Must Follow the Law, So Regulators Will Too" on the implementation of the Fiduciary Rule.

Department of Labor Director of Regulations and Interpretations John J. Canary released a Field Assistance Bulletin on Temporary Enforcement Policy on Fiduciary Duty Rule.

FDIC Chairman Martin J. Gruenberg delivered a speech entitled "Connecting Unbanked Communities to Mainstream Financial Services: The Vital Role of Bank On Coalitions" at the Bank On 2017 National Conference in Washington, DC.

Federal Reserve Bank of Philadelphia President and CEO Patrick T. Harker delivered a speech entitled "Economic Outlook: The Labor Market, Rates and the Balance Sheet" at the MNI Connect Roundtable in New York City.

The Federal Trade Commission released its Fiscal Year 2018: Congressional Budget Justification.

The OCC issued a press release announcing that Michael Sullivan was appointed Senior Deputy Comptroller for Economics, effective June 11, 2017.

The OCC issued a Dear CEO Letter on Updated Guidance on Violations of Laws and Regulations.

The SEC released its Fiscal Year 2018 Congressional Budget Justification Annual Performance Plan and Fiscal Year 2016 Annual Performance Report.

FINRA released a Notice for its Annual Meeting on August 22, 2017 to elect one Small Firm Governor and one Large Firm Governor to the FINRA Board of Governors (FINRA Board).

May 24
The FDIC released its Quarterly Banking Profile for First Quarter 2017.

The Federal Reserve Divisions of Research & Statistics and Monetary Affairs released a Finance and Economics Discussion Paper entitled "Safe Collateral, Arm’s-Length Credit: Evidence from the Commercial Real Estate Mortgage Market."

The Federal Reserve released the minutes from the Federal Open Market Committee Meeting held on May 2-3, 2017.

The Federal Reserve Bank of New York published a Liberty Street Economics blog post entitled "Dealer Balance Sheets and Corporate Bond Liquidity Provision."

May 25

The Federal Reserve Bank of Richmond released its 2016 Annual Report.

Federal Reserve Bank of Chicago President Charles Evans delivered a speech entitled “Lessons Learned and Challenges Ahead” at the Bank of Japan Institute for Monetary and Economic Studies in Tokyo, Japan.

The SEC issued a press release announcing that Peter Uhlmann was named Managing Executive in the Office of the Chairman.

The SEC released a Notice for an open meeting of its Dodd-Frank Investor Advisory Committee scheduled to be held on June 22, 2017 at 9:30 a.m. to discuss, among other items, capital formation and the declining number of initial public offerings.

 

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Introduced Legislation  

House of Representatives

H.R.2706To provide requirements for the appropriate Federal banking agencies when requesting or ordering a depository institution to terminate a specific customer account, to provide for additional requirements related to subpoenas issued under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, and for other purposes.

Introduced: 5/25/2017

Sponsor: Blaine Luetkemeyer (R-Mo.)

Action: Referred to the House Committee on Financial Services.

H.R.2685To require the Secretary of Labor to establish a pilot program for providing portable benefits to eligible workers, and for other purposes.

Introduced: 5/25/2017

Sponsor: Suzan DelBene (D-Wash.)

Action: Referred to the House Committee on Education and the Workforce.

H.R.2675To require adequate information regarding the tax treatment of payments under settlement agreements entered into by Federal agencies, and for other purposes.

Introduced: 5/25/2017

Sponsor: Matt Cartwright (D-Pa.)

Action: Referred to the House Financial Services.

H.R.2639To reauthorize the Elder Justice Act of 2009.

Introduced: 5/24/2017

Sponsor: Peter King (R-N.Y.)

Action: Referred to the House Education and the Workforce.

H.R.2585To reduce risks to the financial system by limiting banks' ability to engage in certain risky activities and limiting conflicts of interest, to reinstate certain Glass-Steagall Act protections that were repealed by the Gramm-Leach-Bliley Act, and for other purposes.

Introduced: 5/22/2017

Sponsor: Michael Capuano (D-Mass.)

Action: Referred to the House Judiciary.

H.R.2570To amend the Truth in Lending Act to clarify that the points and fees in connection with a mortgage loan do not include certain compensation amounts already taken into account in setting the interest rate on such loan

Introduced: 5/19/2017

Sponsor: Bill Posey (R-Fla.)

Action: Referred to the House Committee on Financial Services

H.R. 2565To require the use of replacement cost value in determining the premium rates for flood insurance coverage under the National Flood Insurance Act, and for other purposes.

Introduced: 5/19/2017

Sponsor: Blaine Luetkemeyer (R-Mo.)

Action: Referred to the House Committee on Financial Services

H.R. 2553To amend the Consumer Financial Protection Act of 2010 to bring the Bureau of Consumer Financial Protection into the regular appropriations process, and for other purposes.

Introduced: 5/19/2017

Sponsor: Andy Barr (R-Ky.)

Action: Referred to the House Committee on Financial Services

Senate

S. 1286A bill to lift the trade embargo on Cuba.

Introduced: 5/25/2017

Sponsor: Amy Klobuchar (D-Minn.)

Action: Referred to the Committee on Banking, Housing, and Urban Affairs.

S. 1284A bill to raise the consolidated assets threshold under the small bank holding company policy statement, and for other purposes.

Introduced: 5/25/2017

Sponsor: Orrin Hatch (R-Utah)

Action: Referred to the Committee on Banking, Housing, and Urban Affairs.

S. 1264A bill to amend the Federal Deposit Insurance Act to allow the Federal Deposit Insurance Corporation to exempt certain depository institutions from certain legal requirements, and for other purposes.

Introduced: 5/25/2017

Sponsor: Susan Collins (R-Maine)

Action: Referred to the Committee on Banking, Housing, and Urban Affairs.

S. 1251A bill to require the Secretary of Labor to establish a pilot program for providing portable benefits to eligible workers, and for other purposes.

Introduced: 5/25/2017

Sponsor: Mark Warner (D-Va.)

Action: Referred to the Committee on Health, Education, Labor, and Pensions.

S. 1241A bill to improve the prohibitions on money laundering, and for other purposes.

Introduced: 5/25/2017

Sponsor: Chuck Grassley (R-Iowa)

Action: Referred to the Committee on the Judiciary.

S. 1229A bill to amend the Internal Revenue Code of 1986 to provide for Move America bonds and Move America credits.

Introduced: 5/25/2017

Sponsor: John Hoeven (R-N.D.)

Action: Referred to the Committee on Finance.

 

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IN CASE YOU MISSED IT

 

Office of the Comptroller of the Currency

Michael Sullivan has been appointed Senior Deputy Comptroller for Economics.

Securities and Exchange Commission

Peter Uhlmann was named Managing Executive in the Office of the Chairman.

 

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A LOOK AHEAD

 

House 2017 Calendar

Senate 2017 Calendar

 

House and Senate Not in Session

Thursday, June 1, 2017

10:00am-12:00pm – American Enterprise Institute

Discussion

Is it time to reinstate the Glass-Steagall Act?

 

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EVENTS

 

SIFMA FinTech Conference
June 5-6, 2017 | New York, NY

C&L Boston Regional Seminar 2017
June 07, 2017 | Boston, MA 

Prudential Regulation Conference 2017
June 13, 2017 |
Washington, DC

C&L St. Louis Regional Seminar 2017
June 20, 2017 | St. Louis, MO

Senior Investor Protection Denver Regional Workshop
July 27, 2017 | Denver, CO

Global Tax Reporting Symposium 

October 3-4, 2017 | New York, NY

SIFMA Annual Meeting, The Capital Markets Conference
October 23-24, 2017 | JW Marriott Washington DC

 

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INTERNATIONAL UPDATE

 

Please see: GFMA Weekly Update

 

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