Regulatory Developments 

On November 4, the Federal Reserve invited public comment on a proposal to publish a periodic list of depository institutions that have access to Federal Reserve and payment services. These accounts are often referred to as "master accounts." In August, the Federal Reserve adopted final guidelines establishing a set of factors for Reserve Banks to use in reviewing requests to access these master accounts and payment services. The November 4 proposal would build on the August guidelines by requiring Reserve Banks to periodically disclose which depository institutions have access to their master accounts and payment services. Comments will be accepted for 60 days after publication in the Federal Register.

“Today's proposal will enhance transparency to the public by periodically publishing a comprehensive list of financial institutions that have access to Federal Reserve accounts and payment services.”
- Vice Chair Lael Brainard

CFPB Seeks Further Public Input on Big Tech Payment Platforms

On October 31, the CFPB announced that it will reopen the comment period on a prior request for comment issued in the Federal Register relating to the CFPB’s order of six major technology and peer-to-peer platforms offering payment services (Amazon, Apple, Facebook, Google, PayPal, and Square) to provide information about their products, plans, and practices relating to payments.

The CFPB will reopen the public comment period for 30 days and add additional questions in order to expand its understanding of consumer-facing risks and policy solutions. The CFPB is expected to publish a new notice with the Federal Register, which will provide additional details regarding the comment period. 

SEC Proposes Regulatory Changes to Open-End Fund Liquidity Requirements

On November 2, the SEC, by a vote of 3-2, proposed amendments to rules under the Investment Company Act of 1940 that would modify the existing liquidity risk management program requirements for open-end funds other than money market funds and mandate that open-end funds (excluding exchange-traded funds) engage in swing pricing. The proposed amendments reflect the SEC’s experience with the current liquidity rules since they were adopted in 2016, as well as the SEC’s assertion that the market events of March 2020 at the outset of the pandemic warrant further regulatory requirements to enhance open-end fund liquidity in future stressed conditions.

Read our client alert to learn more.

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