Lawmakers To Consider Oversight Of Several Agencies; SEC, CFTC To

Lawmakers To Consider Oversight Of Several Agencies; SEC, CFTC To Hold Meetings

, Mara C. Giorgio of Squire Patton Boggs (US) LLP - Capital Thinking Blog

Monday, March 23, 2015

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Legislative Activity

Lawmakers to Consider Oversight of Several Agencies

This week, both the House Financial Services Committee and the Senate Banking Committee are slated to hold several hearings focused on oversight efforts of several agencies. The Senate Banking Committee will hold a hearing to review accountability of the Financial Stability Oversight Council (FSOC) as relates to the agency’s designation of nonbank entities as systemically important financial institutions (SIFIs). The House Financial Services Committee will hold a hearing with Chair Mary Jo White to review the Securities and Exchange Commission’s (SEC) agenda, operations, and FY 2016 budget request, as well as a hearing to discuss the Federal Deposit Insurance Corporation’s (FDIC) role in “Operation Choke Point.” Additionally, the Committee will hold a markup this week of various bills, including provisions to reform the Consumer Financial Protection Bureau (CFPB) through the establishment of the Small Business Advisory Board. The House Agriculture Committee will hold two hearings on the Commodity Futures Tradition Commission (CFTC).

This Week’s Hearings:

Tuesday, March 24: The House Financial Services Committee will hold a hearing titled “Examining the SEC’s Agenda, Operations, and FY 2016 Budget Request.”
Tuesday, March 24: The House Financial Services Subcommittee on Oversight and Investigations will hold a hearing titled “The Federal Deposit Insurance Corporation’s Role in Operation Choke Point.”
Tuesday, March 24: The Senate Banking Subcommittee on Securities, Insurance, and Investment will hold a hearing titled “Capital Formation and Reducing Small Burdens.”
Tuesday, March 24: The House Agriculture Subcommittee on Commodity Exchanges, Energy, & Credit will hold a hearing on reauthorization of the CFTC focused on end-user views.
Wednesday, March 25: The House Financial Services Committee will hold a markup of various tax bills.
Wednesday, March 25: The Senate Banking Committee will hold a hearing titled “FSOC Accountability: Nonbank Designations.”
Wednesday, March 25: The House Agriculture Subcommittee on Commodity Exchanges, Energy, & Credit will hold a hearing on reauthorization of the CFTC focused on market participant views.

Regulatory Activity

SEC to Hold Open Meeting on FINRA Registration, JOBS Act Implementation

As foreshadowed by SEC Chair Mary Jo White’s June 2014 speech on stock market reforms, this week, the SEC will hold an open meeting to vote on proposed changes to Rule 15b9-1, which allows some firms to avoid registration with the Financial Industry Regulatory Authority (FINRA). The Commission will also consider whether to adopt rules and forms related to the offer and sale of securities pursuant to Section 3(b) of the Securities Act of 1933 to implement Section 401 of the Jumpstart Our Business Startups Act (JOBS Act).

CFTC to Hold Inaugural Meeting of Market Risk Advisory Council

The CFTC will hold the inaugural meeting of its Market Risk Advisory Council (MRAC), which is sponsored by Commissioner Sharon Y. Bowen. The MRAC will discuss issues related to current risk management techniques employed by Derivatives Clearing Organizations (DCOs) to ensure that appropriate measures are in place to address the potential default of a significant clearing member, as well as the evolving structure of the derivatives markets, particularly with respect to Swap Execution Facilities (SEFs).