There is a broad consensus that the MMF reforms adopted in the wake of the 2008 crisis have not fully achieved their intended aims. A report released by the President’s Working Group on Financial Markets in December 2020 concluded that, notwithstanding reforms adopted by the SEC in 2010 and 2014,
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SEC Takes No-Action Position on Custody of Digital Asset Securities by Special Purpose Broker-Dealers
A recent SEC conditional no-action position (the “No-Action Statement”) has further opened the regulatory door to trading of digital asset securities (“DAS”), by allowing certain limited purpose DAS-only broker-dealers to maintain custody of these securities on behalf of customers. Efforts to meet the SEC staff’s prior guidance that broker-dealers generally…
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The Road Ahead for Financial Regulatory Reform in a Time of Democrats in Control
By John Banes, Luigi L. De Ghenghi, Randall D. Guynn, Jai R. Massari, Daniel Stipano, Gabriel D. Rosenberg, Margaret E. Tahyar, Zachary J. Zweihorn, Kyoko Takahashi Lin & Veronica M. Wissel on
Posted in Administrative Law, Anti-Money Laundering, Bank Capital, Bank Regulation, Biden Transition, Cannabis Banking, CFPB, CFTC, Community Reinvestment Act, Executive Compensation, FDIC, Federal Reserve, FSOC, Liquidity, M&A, Midnight Regulations, OCC, Payments, SEC, Stress Testing, U.S. Basel III, U.S. Congress, Volcker Rule
Today, we released our deck “The Road Ahead for Financial Regulatory Reform in a Time of Democrats in Control.” This deck describes our view of the road ahead for financial regulatory reform under a Biden Presidency, and updates the deck we published shortly after the 2020 election to reflect the…
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The Anti-Money Laundering Act of 2020 – Key Takeaways
The Anti-Money Laundering Act of 2020 implements the most extensive revisions to anti-money laundering law since the USA PATRIOT Act of 2001. The changes will affect both traditional financial institutions and FinTechs, including a new beneficial ownership provision that requires shell companies to submit ownership information to a non-public FinCEN…
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OFAC Belatedly Releases FAQs Regarding Ban on Investments by U.S. Persons in Companies Linked to the Chinese Military, Leaves Key Questions Unanswered
On December 28, 2020 the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) released Frequently Asked Questions (FAQs) relating to Executive Order 13959, “Addressing the Threat from the Securities Investments that Finance Communist Chinese Military Companies,” issued on November 12, 2020 (E.O. …
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FDIC Issues Final Rule on Supervision of ILC Holding Companies
The FDIC has issued a final rule to formalize longstanding expectations it has had for the parent company of a new industrial loan company (ILC). The FDIC adopted the proposed rule issued in March 2020 with few changes. The final rule requires a new ILC to enter into a written…
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Banking Agencies Propose Cyber Reporting Rule: Implications for Cybersecurity Compliance
On December 15, 2020, the Office of the Comptroller of the Currency, the Federal Reserve Board, and the Federal Deposit Insurance Corporation issued a notice of proposed rulemaking that would require substantially faster notification of cybersecurity incidents involving banking organizations, expand the list of triggering events, and impose first-of-its kind…
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Post-Election Update: U.S. Federal Cannabis Legislation
Posted in Cannabis Banking, Legislation
The House has voted to legalize marijuana on a federal level by passing the Marijuana Opportunity Reinvestment and Expungement Act (the MORE Act). The MORE Act is notable not only because it fully legalizes marijuana under federal law but because it was originally introduced by Senator (now Vice President-Elect) Harris
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Davis Polk Client Memorandum: United States Bans Certain Investments by U.S. Persons in Companies Linked to the Chinese Military
By John B. Reynolds, Will Schisa, Jane Faulkner, James C. Lin, Martin Rogers, Joyce Chow, Joshua Friedman & Yuan Zheng on
Posted in Economic Sanctions, Executive Order
On November 12, 2020 President Trump issued a new Executive Order, “Executive Order on Addressing the Threat from the Securities Investments that Finance Communist Chinese Military Companies” (the “November 12 E.O.”) which bans, as of January 11, 2021, certain transactions by any United States person in publicly traded securities …
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Financial Services Regulatory Reform in the Biden Administration: Key Areas of Focus
On November 9, 2020, we released our deck “Financial Services Regulatory Reform in the Biden Administration: Key Areas of Focus.” This deck describes our view of the road ahead for financial regulatory reform under a Biden Presidency and a Republican Senate. We see most of the action coming from the…
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