Blog: Daily Financial Regulation Update — Friday, December 9, 2022 | Paul Hastings LLP – JDSupra – JD Supra

Congress

U.S. Senate

Committee on Banking, Housing, and Urban Affairs

Brown, Toomey Statement on Sam Bankman-Fried Testimony

December 8, 2022

U.S. Sen. Sherrod Brown (D-OH), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, and U.S. Sen. Pat Toomey (R-PA), Ranking Member of the Senate Committee on Banking, Housing, and Urban Affairs, released a statement regarding the Committee’s request that Sam Bankman-Fried testify on FTX’s collapse.

U.S. House of Representatives

Committee on Financial Services

Hearing: E, S, G and W: Examining Private Sector Disclosure of Workforce Management, Investment, and Diversity Data

December 8, 2022

The U.S. House Committee on Financial Services held a hearing entitled, “E, S, G and W: Examining Private Sector Disclosure of Workforce Management, Investment, and Diversity Data.”

Committee on Small Business

Statements on SBA Actions in Response to House Report on Fraud in the Paycheck Protection Program

December 8, 2022

The U.S. Small Business Administration and U.S. House Small Business Committee Chairwoman Nydia M. Velázquez released statements on the suspension of certain non-lenders from agency programs and investigation of banks involved in alleged fraud outlined in a recent report issued by the House Select Subcommittee on the Coronavirus Crisis.

Federal Agencies

U.S. Department of the Treasury

G7 Cyber Expert Group Releases New Reports on Ransomware and Third-Party Risk

December 8, 2022

The G7 Cyber Expert Group – which U.S. Department of the Treasury’s Office of Cybersecurity and Critical Infrastructure co-chairs alongside the Bank of England – recently released two reports addressing ransomware and third-party risk within the financial sector.

Remarks by Secretary of the Treasury Janet L. Yellen at the Bureau of Engraving and Printing Facility in Fort Worth, Texas

December 8, 2022

U.S. Secretary of the Treasury Janet L. Yellen gave remarks at the Bureau of Engraving and Printing Facility in Fort Worth, Texas.

Secretary of the Treasury Janet L. Yellen Meets with the Global Business Alliance

December 8, 2022

U.S. Secretary of the Treasury Janet L. Yellen met with members of the Global Business Alliance to discuss the economic recovery, both domestically and across the world.

Federal Reserve Bank of New York

Article: Seeking Solutions for the Costs and Challenges of Food Insecurity

December 8, 2022

The Federal Reserve Bank of New York published a Teller Window article entitled, “Seeking Solutions for the Costs and Challenges of Food Insecurity.”

Federal Deposit Insurance Corporation

FDIC State Profiles – Third Quarter 2022

December 8, 2022

The Federal Deposit Insurance Corporation released the FDIC State Profiles for the third quarter 2022.

Office of the Comptroller of the Currency

OCC Reports on Key Risks Facing Federal Banking System

December 8, 2022

The Office of the Comptroller of the Currency reported the key issues facing the federal banking system in its Semiannual Risk Perspective for Fall 2022.

Securities and Exchange Commission

Sample Letter to Companies Regarding Disclosure Obligations Concerning Recent Developments in Crypto Asset Markets

December 8, 2022

The Securities and Exchange Commission Division of Corporation Finance has posted a sample letter to companies regarding recent developments in crypto asset markets.

Meeting: Investor Advisory Committee

December 8, 2022

The Securities and Exchange Commission held a meeting of the Investor Advisory Committee.

National Credit Union Administration

NCUA Releases Credit Union System Performance Data for the Third Quarter of 2022

December 8, 2022

The National Credit Union Administration released the system performance data for the third quarter 2022, showing that total loans outstanding in federally insured credit unions increased $235 billion, or 19.2%, over the year ending in the third quarter of 2022, to $1.46 trillion.

Bank Policy Institute

BPI Welcomes House Passage of Second-Chance Hiring Legislation

December 8, 2022

The Bank Policy Institute expressed support for legislation enabling banks to hire more rehabilitated people with prior minor criminal records.

International

European Commission

Taxation: New transparency rules require service providers to report crypto-asset transactions

December 8, 2022

The European Commission proposed new tax transparency rules for all service providers facilitating transactions in crypto-assets for customers resident in the European Union.

Taxation: Embracing the digital transition to help fight VAT fraud and support EU businesses

December 8, 2022

The European Commission proposed a series of measures to modernize and make the EU’s Value-Added Tax (VAT) system work better for businesses and more resilient to fraud by embracing and promoting digitalization.

European Banking Authority

EBA launches consultation to amend the data collection for the benchmarking exercise in 2024

December 8, 2022

The European Banking Authority published a consultation paper to amend the Implementing Regulation on the benchmarking of credit risk, market risk and IFRS9 models for the 2024 exercise.

UK Financial Conduct Authority

Report: Insights from the 2021 Cyber Coordination Groups

December 8, 2022

The UK Financial Conduct Authority published a report entitled, “Insights from the 2021 Cyber Coordination Groups.”

Administration Changes

Vacancies

Federal Deposit Insurance Corporation

  • Chair – Vacant (Martin Gruenberg serves as Acting Chair and was nominated to serve as Chair November 14, 2022).
  • Vice Chairman – Travis Hill (nominated September 20, 2022)
  • Member – Jonathan McKernan (nominated September 20, 2022)

Office of the Comptroller of the Currency

  • Comptroller – Vacant (Michael Hsu serves as Acting Comptroller)

Appointments/Confirmation Hearings

U.S. Department of the Treasury – Janet Yellen (effective January 26, 2021)

Federal Reserve Board – Jerome H. Powell (effective May 23, 2022)

Federal Reserve Bank of New York – John C. Williams (effective June 18, 2018)

Federal Deposit Insurance Corporation – Martin Gruenberg (Acting Chair, appointed February 5, 2022)

Consumer Financial Protection Bureau – Rohit Chopra (effective October 12, 2021)

Securities and Exchange Commission – Gary Gensler (effective April 17, 2021)

Small Business Administration – Isabella Casillas Guzman (effective March 16, 2021)

Commodity Futures Trade Commission – Rostin Behnam (effective December 17, 2021)

Financial Crimes Enforcement Network

National Credit Union Administration – Todd M. Harper

U.S. Department of Housing and Urban Development – Marcia Fudge (effective March 10, 2021)

Federal Housing Finance Agency – Sandra L. Thompson, (confirmed May 25, 2022)

U.S. Department of Education – Dr. Miguel Cardona (effective March 2, 2021)

PH Client Alerts

Click here to read more from our Coronavirus series.

Legislation/Legislative Updates

Click here to view the full text of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), Enacted March 27, 2020.

Click here to view the full text of the Paycheck Protection Program Increase Act of 2020, Enacted April 24, 2020.

Click here to view the full text of the Paycheck Protection Program Flexibility Act of 2020, Enacted June 5, 2020.

Click here to view the full text of the Consolidated Appropriations Act, 2021, Enacted December 27, 2020.

Click here to view the full text of the American Rescue Plan of 2021, Enacted March 11, 2021.

Click here to view the full text of the PPP Extension Act of 2021, Enacted March 30, 2021.

Click here to view a running list of proposed legislation from the Senate Committee on Banking, Housing, and Urban Affairs, Senate Committee on Small Business and Entrepreneurship, House Committee on Financial Services, and House Committee on Small Business.

Blog: LEE ENTERPRISES, INC : Results of Operations and Financial Condition, Regulation FD Disclosure, Financial Statements and Exhibits (form 8-K) – Marketscreener.com

Item 2.02. Results of Operations and Financial Condition.

On December 8, 2022, Lee Enterprises, Incorporated (the “Company”) reported its
preliminary results for the fiscal year ended September 25, 2022. A copy of the
news release is furnished as Exhibit 99.1 to this Form 8-K and information from
the news release is hereby incorporated by reference. The information in this
report shall not be treated as filed for purposes of the Securities Exchange Act
of 1934, as amended.

Item 7.01. Regulation FD Disclosure

We expect to be unable to file our Annual Report on Form 10-K for the fiscal
year ended September 25, 2022 (the “2022 Form 10-K”) within the prescribed time
period without unreasonable effort or expense primarily because we require
additional time to complete our assessment of the effectiveness of our internal
control over financial reporting.

As a result of the foregoing, we need additional time to finalize our financial
statements and related disclosures to be filed as part of the 2022 Form10-K. We
expect to file our 2022 Form 10-K within the extension period of 15 calendar
days as provided by Rule 12b-25 under the Securities Exchange Act of 1934, as
amended. Management does not anticipate this continued evaluation to have any
material impact on the preliminary financial results included in this earnings
release.

Item 9.01. Financial Statements and Exhibits.

           (d)Exhibits
              99.1           Earnings Release - September 25, 2022
                           Cover Page Interactive Data File (embedded within the Inline XBRL
               104         document)


——————————————————————————–

© Edgar Online, source Glimpses

Blog: Congress Joint Economic Committee touts economic benefits of Baby Bonds – Financial Regulation News – Financial Regulation News

The Congress Joint Economic Committee (JEC) recently released a report touting the benefits of automatic child trust accounts or Baby Bonds, noting the resource offers economic opportunities and social mobility.

© Shutterstock

“The transition to adulthood is a challenging time for everyone,” JEC Chairman Rep. Don Beyer (D-VA) said. “Ensuring that children can enter this defining stage of life with a nest egg would open up a world of possibilities and provide new pathways to building wealth. And the positive effects of Baby Bonds are not limited to only the children and families who directly benefit from these accounts: When young adults can pursue education, start businesses and buy homes, it creates economy-wide benefits.”

Over seven million domestic families do not have access to a bank account, leaving individuals vulnerable to predatory lenders and financial instability.

“Baby Bonds are also powerful tools for reducing economic inequities by providing disadvantaged children with seed money to build a more promising future for themselves and future generations,” Beyer concluded. “These kinds of investments would be an important step toward promoting an economy that works for all.”

Dr. Darrick Hamilton, University Professor and Founding Director of the Institute on Race, Power and Political Economy at The New School, noted wealth’s true essence is functional.

“What it can do for you…wealth is as much the beginning as it is the end of an economically secure life,” Hamilton said. “Baby Bonds guarantee a birthright to capital, a nest egg, so to speak, for every child, to have a pathway to the prosperity that wealth provides. With Baby Bonds, the privilege of wealth would no longer be an exclusive domain of the wealthy. We applaud Chair Beyer and JEC’s leadership on building momentum to bring this to the American people.”

Blog: Public Company Accounting Oversight Board outlines KPMG sanctions – Financial Regulation News – Financial Regulation News

Public Company Accounting Oversight Board (PCAOB) officials have detailed seven settled disciplinary orders sanctioning the tax and advisory firm KPMG and individuals for a series of alleged violations.

© Shutterstock

The $7.7 million in penalties addressed alleged violations of professional auditing standards, quality control standards, and PCAOB rules.

“These actions should send the message to KPMG and all other registered firms that the PCAOB is committed to rooting out misconduct wherever it occurs and will employ all sanctions at its disposal to protect investors and improve audit quality,” PCAOB Chair Erica Y. Williams said.

The Board alleged KPMG Colombia violated PCAOB rules and standards in connection with the agency’s 2016 inspection of the firm. PCAOB also charged the firm with violating quality control standards relating to audit documentation and the firm’s internal training program.

The PCAOB sanctioned KPMG UK for allegedly violating PCAOB quality control standards related to integrity and personnel management.

The PCAOB also sanctioned KPMG UK for allegedly failing to reasonably supervise an unregistered audit firm in four consecutive audits of a public company client.

The Board determined KPMG UK was found to have violated, in connection with the same four audits, PCAOB standards regarding due professional care, audit planning, audit committee communications, and quality control – adding the firm made several inaccurate filings on PCAOB Form AP regarding other audit clients.

Additionally, the PCAOB sanctioned KPMG India and KPMG India engagement partner Sagar Pravin Lakhani based on KPMG India’s quality control failures and Lakhani’s supervisory and documentation failures in connection with a practice of signing off on blank placeholder work papers during the 2017 audit of a public company.

Blog: Bill to close shadow banking loophole introduced in Senate – Financial Regulation News – Financial Regulation News

U.S. Sens. Sherrod Brown (D-OH), Bob Casey (D-PA), and Chris Van Hollen (D-MD) introduced a bill in the Senate that would require companies that own an industrial loan company (ILC) to be subject to the same rules and consumer protections as traditional banks.

© Shutterstock

ILCs are state-chartered banking institutions whose holding companies are not subject to supervision by the Federal Reserve due to a loophole in the Bank Holding Company Act. As a result, ILCs owned by tech companies like Square are not subject to the same regulatory safeguards as traditional banks.

Their bill, the Close the Shadow Banking Loophole Act, would close this loophole. Thus, companies that acquire an ILC must be subject to the same supervision by the Federal Reserve as any other bank holding company under the Bank Holding Company Act. It would also provide a carve-out for existing ILCs.

“Letting Big Tech and commercial companies operate banks without proper oversight will only open doors for predatory lending, invasions of consumer privacy, and broader financial instability,” Brown, chair of the Senate Committee on Banking, Housing, and Urban Affairs, said. “To protect consumers’ pocketbooks and ensure a strong banking system for Main Street, we need to ensure all banking institutions play by the same rules.”

The bill has been endorsed by several organizations, including the National Community Reinvestment Coalition, the Independent Community Bankers of America (ICBA), Americans for Financial Reform, the Bank Policy Institute, the Center for Responsible Lending, the Credit Union National Association, the National Association of Federally-Insured Credit Unions, and PNC Financial Services Group, among others.

“The ILC loophole allows large commercial and technology firms to own full-service banks while skirting regulatory oversight—threatening the financial system, endangering consumers and the economy, and creating an uneven regulatory landscape. The Close the Shadow Banking Loophole Act will ensure a safe and sound financial system and protect the longstanding U.S. policy separating banking and commerce,” Rebeca Romero Rainey, president and CEO at ICBA, said.

The Bank Policy Institute also backs the proposed legislation.

“BPI supports Chairman Brown’s effort to close the ILC loophole and guarantee equal treatment for entities providing indistinguishable products and services under the law. Any entity seeking the benefits of bank ownership must be held to the same rules that apply to banks to prevent unacceptable risks to consumers, taxpayers, and the existing financial framework,” Ed Hill, senior vice president and head of government affairs at BPI, said.

Blog: VASP Included in Newly Amended Hong Kong AML Regulations – Securities.io

A bill to amend the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) has been passed by the Legislative Council in Hong Kong. One of the amendments to AMLO seeks to introduce a licensing regime for virtual assets service providers (VASP). An earlier proposed amendment bill specified that the licensing regime would take effect from March 1, 2023, but it has since been postponed. A circular issued by the Hong Kong Monetary Authority, states that the provisions for the regulation of VASPs will come into operation on June 1, 2023, to provide ample time for preparatory work.

The Financial Action Task Force (FATF) defines virtual asset service providers (VASP) as any natural or legal person who, as a business, conducts operations or activities such as:

  • the exchange between virtual assets and fiat;
  • exchange between one or more forms of virtual assets;
  • transfer of virtual assets;
  • virtual asset custody on behalf of clients or providing a platform that enables users to store virtual assets; and
  • participation in and provision of financial services related to an issuer’s offer and/or sale of a virtual asset for or, on behalf of another natural or legal person.

Hong Kong is not the only territory to announce licensing requirements for VASPs. In April, The Central Bank of Cuba announced, via released documents, that it will begin issuing VASP licenses.

Crypto Regulation and Adoption in Hong Kong

The move to issue licenses to VASPs is an indication that Hong Kong is lowering the guardrails of its strict crypto rules. The licensing regime for VASPs is a move towards legalizing retail crypto trading in Hong Kong and sustainably growing the virtual assets ecosystem.

Virtual assets are being recognized in Hong Kong as an important asset class or commodity; hence, the need to regulate them and the platforms or exchanges on which they are traded, in such a way that they are subjected to similar regulations to traditional financial institutions. Based on the new amendment, all virtual assets trading platforms will register with the Securities and Futures Commission (SFC) and be subjected to internal control, disclosure requirements, and on-premise inspection, among other compliance demands.

The SFC first released an opt-in framework for regulating and issuing licenses to crypto exchanges, in 2019. To ensure the activities of crypto exchanges fall within the purview of regulators, the SFC proposed that only virtual asset platforms that offer to trade at least one security token will be given a license. The SFC also limited the licensed exchanges to only servicing professional investors who understand the complexities of virtual assets, or investors with an investment portfolio of at least HK$8 million (~ $1 million).  The new licensing regime aims to bring virtual asset platforms under the direct purview of the SFC.

Hong Kong’s policies on cryptocurrencies differ from the stringent crypto rules of mainland China. At the Hong Kong FinTech week held in October, Hong Kong’s Financial Services and Credit Bureau issued a policy statement on virtual assets. An excerpt from the policy statement on the development of virtual assets in Hong Kong reads: “As an international financial center, Hong Kong is open and inclusive towards the global community of innovators engaging in virtual assets business. The government in conjunction with financial regulators is working towards providing a facilitating environment for promoting sustainable and responsible development of the virtual asset sector in Hong Kong.”

Hong Kong is setting the pace for the regulation of virtual assets and virtual asset platforms. With its clear-sighted crypto rules, Hong Kong is creating a crypto regulatory playbook that might serve as a template for other regulators in years to come.

Blog: TotalEnergies SE: Statement in Compliance With the Article 223-16 of the General Regulation of the Financial Markets Authority (Autorité des marchés financiers) – Business Wire

PARIS–(BUSINESS WIRE)–Regulatory News:

TotalEnergies SE (Paris:TTE) (LSE:TTE) (NYSE:TTE) :

Date

Total number of shares

Number of voting rights exercisable at

Shareholders’ meetings

November 30, 2022

2,619,131,285

2,690,846,033

A total number of 2,809,052,739 voting rights are attached to the 2,619,131,285 underlying TotalEnergies shares (referred to as ‘theoretical voting rights’), including:

  • 118,206,706 voting rights attached to the 118,206,706 TotalEnergies shares held by TotalEnergies SE that cannot be exercised pursuant to the provisions of the Articles L. 225-111 and L. 225-210 of the French Commercial Code.