Financial services regulatory reform will continue to be active in 2021, with the Biden Administration focused on activity at the intersection of financial regulation and social policy.  As we observe the changing landscape, here is the Spring Forward Edition of our reference tool, which provides context and summarizes current and
Continue Reading Davis Polk Financial Services Regulatory Reform Tool—Spring Forward Edition

The Federal Reserve has finalized its supervisory guidance on board of directors’ effectiveness (Board Effectiveness Guidance) more than three years after it was proposed.  The final Board Effectiveness Guidance is a key milestone in the Federal Reserve’s multi-year review of the practices of boards of directors, particularly at
Continue Reading Federal Reserve Finalizes Board Effectiveness Guidance

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
Continue Reading The Road Ahead for Financial Regulatory Reform in a Time of Democrats in Control

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
Continue Reading The Anti-Money Laundering Act of 2020 – Key Takeaways

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
Continue Reading FDIC Issues Final Rule on Supervision of ILC Holding Companies

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
Continue Reading Banking Agencies Propose Cyber Reporting Rule: Implications for Cybersecurity Compliance

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
Continue Reading Financial Services Regulatory Reform in the Biden Administration: Key Areas of Focus

The Office of the Comptroller of the Currency (OCC) has finalized a rule (Final Rule) establishing a bright-line test for determining the true lender of a loan.  The Final Rule is intended to address the now-common lending arrangements involving a partnership between a national bank or
Continue Reading The OCC Finalizes a Rule to Answer the True Lender Question

The banking sector is both regulated and supervised, a key difference between banking and the rest of the regulated sectors in the economy.  Supervision happens behind the veil of confidential supervisory information in ways that are both appropriate and concerning.[1]  The scope of what is appropriate and what is
Continue Reading Federal Financial Regulatory Agencies Propose New Rule Clarifying the Role of Supervisory Guidance

The Federal Deposit Insurance Corporation (FDIC) has taken another important step to increase transparency and accountability in the supervisory process by proposing amendments to its existing Guidelines for Appeals of Material Supervisory Determinations (the Proposal).

In a comment letter submitted this week, Davis Polk & Wardwell LLP
Continue Reading Davis Polk Comments on the FDIC’s Proposed Amendments to its Guidelines for Appeals of Material Supervisory Determinations