US Reg Round Up: 13/12/2024

Federal Reserve

Federal Reserve Board provides technical clarification that its account access guidelines apply to excess balance accounts - 09 December 2024

The Federal Reserve Board has clarified that its account access guidelines also apply to excess balance accounts (EBAs). EBAs are limited-purpose accounts at Federal Reserve Banks used to maintain the reserve balances of eligible institutions and are managed by an agent on their behalf. The Board's guidelines outline transparent, risk-based factors for Reserve Banks to use when reviewing access requests. The clarification will take effect upon publication in the Federal Register, expected soon.

Agencies issue statement on elder financial exploitation - 04 December 2024

Five federal financial regulatory agencies, including FinCEN and state financial regulators, have issued a joint statement to guide supervised institutions on combating elder financial exploitation. The statement highlights the significant impact of financial exploitation, with a FinCEN analysis revealing $27 billion in suspicious activity related to elder exploitation. The agencies emphasize the role of financial institutions in preventing these crimes by implementing practices such as employee training, transaction holds, trusted contact processes, timely reporting of suspicious activities, and collaboration with law enforcement and protective services.

Federal bank regulatory agencies seek further comment on reducing regulatory burden - 03 December 2024

The federal bank regulatory agencies, including the FDIC, Federal Reserve, and OCC, have announced their third request for public comment as part of an ongoing effort to reduce regulatory burdens. Under the Economic Growth and Regulatory Paperwork Reduction Act, the agencies are reviewing regulations to identify outdated or unnecessary requirements. This notice focuses on three categories: Rules of Procedure, Safety and Soundness, and Securities, inviting public feedback over the next 90 days. Further consultations on other categories will be held in 2025. The agencies also plan to host outreach meetings for stakeholders to discuss regulatory issues directly.

Securities and Exchange Commission

SEC issue report on Nationally representative survey of investors and continues focus on investment fraud - 12 December 2024

The SEC's Office of the Investor Advocate has published its 2024 Report to Congress, highlighting findings from the Thoughtful Households Relating InVesting Experiences (THRIVE) Panel, a survey panel designed to provide data on investor behavior. The report also addresses the growing issue of investment fraud, detailing an increase in reported fraud incidents in 2024 and the creation of the Interagency Securities Council to combat financial fraud. Cristina Martin Firvida, Director of the Office, emphasized the importance of coordinated efforts across regulators and law enforcement to tackle fraud and protect investors.

SEC to examine mandatory Arbitration clauses in adviser agreements and alternative assets and retail investors - 03 December 2024

The SEC’s Investor Advisory Committee will hold a virtual meeting on Dec. 10, 2024, at 10 a.m. ET, which will be webcast on the SEC website. The meeting will feature two panels: one on the use of mandatory arbitration clauses by registered investment advisers, and another on the mainstreaming of alternative assets to retail investors. The committee will also discuss a potential recommendation on protecting investors from interactions with "finfluencers." The committee, established by the Dodd-Frank Act, advises the SEC on investor protection and market integrity issues.