Federal regulators are busier than ever dealing with matters involving emerging technology. In this regulatory roundup, learn about some of the more recent activities concerning the oversight of solutions intended to allow for faster payments and measures regulators are taking to ensure speed does not lead to fraud:
Fed Gov. speaks about digital payments at fintech event
Federal Reserve Gov. Chris Waller spoke at the Global Fintech Fest on the topic of technology-driven solutions designed to facilitate faster payments. He described the success of the public-private partnership in India tasked with building a “technology stack” of digital platforms to broaden financial inclusion in a cost-effective manner. While efficiency is viewed as a major upside of such payment systems, Waller stressed the need to not move so fast as to enable illegal activity, such as fraud and money laundering. He spoke at length about the need for risk-management policies and solutions that evolve to keep up with advancements in payment technology. Read his full remarks here.
FDIC lists July enforcement actions
The Federal Deposit Insurance Corporation (FDIC) published a list of administrative enforcement actions taken against banks and individuals in July, noting that no administrative hearings are scheduled for September 2024. Among the listed actions are six safety and soundness orders and one amended notice of charges of hearing. The administrative enforcement actions in those orders consisted of two consent orders and four prohibition orders, and one amended notice of charges of hearing. To view orders, adjudicated decisions and notices, and the administrative hearing details online, please visit the FDIC’s webpage.
SEC adopts reporting enhancements for investment funds
The Securities and Exchange Commission (SEC) amended its reporting requirements for registered investment companies to provide investors and the SEC more timely information about certain investment funds. These amendments pertain to elements of Form N-PORT reports, which provide important information about a fund’s portfolio holdings and related data used to assess a fund’s risks. The SEC hopes the amended requirements will help promote more effective regulatory monitoring and oversight of the fund industry for the benefit of fund investors. Learn more here.
FFIEC issues new examination booklet for tech matters
The Federal Financial Institutions Examination Council issued a new “Development, Acquisition, and Maintenance” booklet to assist examiners in assessing information technology practices. The booklet describes fundamental examination expectations regarding practices related to development and acquisition planning and execution, governance and risk management, and maintenance and change management. It also discusses the interconnectedness of an entity’s assets and processes and those of its third-party service providers along with information to help examiners assess whether management adequately addresses risks and complies with applicable laws and regulations. Learn more here.