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SEC Updates Auditor Independence Rule

On October 16, the SEC announced that it adopted final amendments to certain auditor independence requirements in Rule 2-01 of Regulation S-X. The final amendments are based on recurring fact patterns that the SEC staff has observed over years of consultations in which certain relationships and services triggered technical independence rule violations…

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SEC Adopts New Regulatory Framework for Fund-of-Funds Rule

On October 7, 2020, the Securities and Exchange Commission (the “SEC”) adopted Rule 12d1-4 under (the “Rule”) the Investment Company Act of 1940 (the “1940 Act”) and related amendments designed to put in place a comprehensive and streamlined regulatory framework for fund-of-funds arrangements.[1] This alert provides an overview of the recently adopted Rule…

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Agencies Publish Final Rule on CECL Implementation

On October 1, the OCC, Federal Reserve and Federal Deposit Insurance Corporation (Agencies) published a final rule (Final Rule) that delays the estimated impact on regulatory capital stemming from the implementation of Accounting Standards Update No. 2016-13, “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”…

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Federal Reserve Posts FAQs on New Control Rule

On September 30, the Federal Reserve posted FAQs on its recently adopted control rule (Control Rule). The FAQs cover the calculation of issuer’s shareholders’ equity under the Control Rule, actions to be taken if an investment previously considered to be noncontrolling triggers one or more of the presumptions of control in the Control Rule,…

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Federal Reserve Seeks Comment on Proposal to Amend Capital Planning and Stress Testing Requirements to be Consistent with Recent Rule Changes

On September 30, the Federal Reserve invited public comment on a proposal that would update its capital planning and stress testing requirements to be consistent with other Federal Reserve rules that were recently modified. In 2019, the Federal Reserve finalized a framework that sorts large banks into different categories based on…

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Federal Reserve Extends Restrictions on Share Repurchases and Dividend Payments by Large Banks and Other Measures to Support Capital Resilience

On September 30, the Board of Governors of the Federal Reserve System (Federal Reserve) announced it would extend for the fourth quarter of 2020 prohibitions on share repurchases and caps on dividends by large banks having more than $100 billion in total assets. Although the most recent stress tests affirmed large banks…

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CFPB Continues to Target Misleading VA Mortgage Loan Advertisements

On September 14, the CFPB announced a settlement in its eighth case arising out of the CFPB’s “sweep of investigations” of mortgage companies allegedly mailing deceptive advertisements for VA-guaranteed mortgages to service members and veterans. The CFPB’s focus on protecting consumers, especially those of vulnerable populations, is in line with…

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