US Reg Round Up: 17/02/2024

Federal Reserve

The FED release hypothetical scenarios for its annual stress test - 15 February 2024

For the first time, the board released four hypothetical elements which are designed to test the different risks the banking system may experience. The hypothetical recession scenarios the FED have proposed extend to two years in the future, and will be tested against a severe global recession with heightened stress from both the commercial and residential real estate markets, as well as the corporate debt market.

Securities and Exchange Commission

SEC adopts amendments to enhance PE reporting - 08 February 2024

The Securities and Exchange Commission (SEC) has adopted amendments to Form PF, a confidential reporting form used by certain SEC-registered investment advisers to private funds, including those also registered with the Commodity Futures Trading Commission (CFTC). Key amendments include requiring more detailed reporting on investment exposures, borrowing and counterparty exposure, market factors, currency exposure, turnover, country and industry exposure, and risk metrics.

Office of the superintendent of financial institutions

OSFI releases new supervisory frameworks to modernize financial supervision- 08 February 2024

This new framework is the most significant change to the OSFI’s supervisory approach in 25 years. The main changes include: expanding the 4-point risk rating scale to an 8 point scale, more information will be required from federally regulated financial institutions (FRFI) about the drivers to their risk rating, and the introduction to new risk assessment categories (such as: business risk, financial resilience, operational resilience, risk governance). This new supervisory framework will commence on the 1^st of April 2025.