US
U.S. Agencies (FRB, OCC & FDIC) Issue Federal Register (2023-25797) Regarding Community Reinvestment Act (CRA) FINAL Rule
The OCC, FRB Board, and the FDIC are adopting final amendments to their regulations implementing the Community Reinvestment Act of 1977 (CRA) to update how CRA activities qualify for consideration, where CRA activities are considered, and how CRA activities are evaluated. This rule is effective on April 1, 2024, except for amendment numbers 29, 52, and 75, which are effective April 1,2024 through January 1, 2031, and amendment numbers 7, 11, 18, 20, 25, 35, 39, 43, 45, 49, 58, 62, 66, 68, and 72, which are delayed indefinitely. The agencies will publish a document in the Federal Register announcing an effective date for the delayed amendments.
Canada
Canadian Securities Administrators (CSA) Issues Guidance on Business Continuity Planning
The CSA has issued guidance on registered firms establishing written Business Continuity Plans (BCP) to manage the impact of events causing significant business disruption. The BCP is part of a system of controls for supervision that registered firms must establish, maintain, and apply to ensure compliance with securities legislation. As appropriate to a firm’s size and business model, the BCP should include procedures to mitigate business interruptions, client, personnel, regulator communication plans, procedures to protect books, records, office relocation details, and business succession. In addition, the BCP should name a person responsible for communicating with regulators.
Global
International Accounting Standards Board (IASB) & International Sustainability Standards Board (ISSB) Issue a Joint January, 2024 Update
The Boards of the IASB and ISSB met to discuss feedback on the ISSB’s Request for Information Consultation on Agenda Priorities. Specifically, the Boards discussed feedback on a potential project on integration in reporting and feedback on connectivity. The ISSB’s Request for Information included questions on: 1) the priority of a potential project on integration in reporting relative to the ISSB’s proposed sustainability-related projects; 2) whether that project should be a formal joint project with the IASB or an ISSB-led project; and 3) whether that project should build on the concepts from the IASB’s Exposure Draft Management Commentary, the Integrated Reporting Framework, and other sources.
The Bank of International Settlements (BIS) Basel Committee Issues Analysis of Public Information & Stablecoin Runs
The Basel Committee has published the working paper “Public information and stablecoin runs” outlining how in order to promise stablecoin worth, credible issuers hold a variety of reserve (collateral) assets. The report analyzes the impact of collateral disclosure/perceived reserve asset quality on peg stability. Greater reserve transparency can increase run risk when stablecoin holders believe the quality of reserves is low or when the transaction costs of conversion to fiat are low, but can lower run risk when reserve quality beliefs are strong or transaction costs are high.
