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Michigan Department of Insurance and Financial Services issues FAQs for credit unions
On March 24, the Michigan Department of Insurance and Financial Services issued FAQs for credit unions. The FAQs provide responses to questions regarding continuation of examinations, credit union operations and annual meetings, working with credit union members experiencing hardship due to Covid-19, and reporting requirements.
Massachusetts Division of Banks requests notification of certain operational changes
On March 19, the Massachusetts Division of Banks sent an email asking that licensees notify their customers of temporary closure of their facilities and the availability of any alternative service options as soon as practical. It also asks licensees to notify the Division promptly regarding any location closures, business disruptions, or other significant developments relating to Covid-19, such as closure of Massachusetts offices/locations, significant staff shortages, liquidity shortages, distress with funding sources, or issues funding closed loans for Massachusetts consumers.
Indiana Securities Division issues notice to permit loan brokers and collection agents to work from home
On March 24, the Indiana Secretary of State, Securities Division (Division), issued guidance to loan broker and collection agencies in response to Covid-19, encouraging licensees to instruct their employees to work from home and refrain from any in-person meetings. The guidance reminds licensees that relevant Indiana laws and regulations place no general prohibition on individuals employed by licensees from performing work remotely from their personal residences. A temporary arrangement where an employee works from home during the Covid-19 outbreak does not require licensure as a branch office. Licensees should continue to take any necessary steps to supervise employees working remotely.
New York extends deadline for regulated institutions to submit Covid-19 response plans
On March 24, New York’s Department of Financial Services extended the deadlines for regulated institutions to respond to the Department’s March 10 requests for their plans to manage the financial and operational risk caused by Covid-19 until May 25.
California announces statewide shelter-in-place
On March 19, the California Governor announced a statewide shelter in place. Per the announcement, nonessential businesses must close. Banks are considered “essential businesses” and may remain open in California.
Indiana Securities Commissioner eases certain filing and other requirements for financial professionals
On March 24, the Indiana Securities Commissioner issued an administrative order providing relief to broker-dealers, investment advisers, and their registered agents or investment adviser representatives affected by the Covid-19 outbreak. Among other things, the administrative order provides the following relief:
- creates a temporary exemption from registration where a person is working from a location outside of the jurisdiction where that person is currently registered, as long as the person notifies the Division;
- permits firms to submit Form U4 electronically without obtaining physical signatures until it is practicable to do so;
- grants a 45-day extension of time for state registered investment advisers to adhere to any filing, updating, or customer delivery requirements required by Forms ADV; and
- extends the time to May 15 for any broker-dealer or investment adviser to submit complete responses to the 2020 Investment Adviser/Broker-Dealer Questionnaire.
Kentucky Department of Financial Institutions provide guidance to non-depository institutions
On March 24, The Kentucky Department of Financial Institutions (DFI) provided guidance to non-depository institutions to take steps to comply with CDC directives and Governor Andy Beshear’s guidance and executive orders. Entities are ordered to reduce face-to-face transactions; work with customers affected by the coronavirus to meet their financial needs; implement policies and procedures to work constructively with customers (including by restructuring existing loans, extending repayment terms, and waiving fees); manage COVID-19 related staffing issues; and ensure that business continuity plans include pandemic planning.
SCOTUS extends filing deadline
On March 19, the U.S. Supreme Court issued an order extending the deadline to file any petition for a writ of certiorari due on or after the date of the order “to 150 days from the date of the lower court judgment, order denying discretionary review, or order denying a timely petition for rehearing.” Motions for extensions of time pursuant to Rule 30.4 will ordinarily be granted as a matter of course if the difficulties relate to Covid-19 and if the length of extension requested is reasonable under the circumstances. The Clerk will also entertain motions to delay the distribution of petitions for writs of certiorari where the petitioner’s grounds for additional time to file a reply are due to difficulties related to Covid-19. These modifications should indicate whether the opposing party has an objection. The Court emphasizes that these modifications—which will remain in effect until further order of the Court—do not apply to cases that have been granted certiorari or where a direct appeal or an original action has been set for argument.
FDIC asks FASB to delay CECL rules due to Covid-19
On March 19, the FDIC sent a letter to the Financial Accounting Standards Board (FASB) encouraging FASB to delay transitions to and exclusions from certain accounting rules, including (i) excluding Covid-19-related modifications from being considered a concession when determining a troubled debt restructuring classification; (ii) permitting financial institutions an option to postpone implementation of the current expected credit losses (CECL) methodology given the current economic environment; and (iii) imposing a moratorium on the effective date for institutions that are not currently required to implement CECL to allow these financial institutions to focus on immediate business challenges relating to the impacts of Covid-19. CSBS issued a statement on March 20 announcing it fully supports the FDIC’s request, stating the delay will give banks additional time to focus on their customers.
Alabama State Bank Dept. issues Covid-19 lending/borrowing guidance
On March 19, the Alabama State Bank Department (ASBD) issued guidance on lending and borrowing in light of Covid-19. ASBD notes that it has historically required Other Real Estate (ORE) properties that are held for five years to be written down to $1 if the bank has not received written approval of the Superintendent for an extended holding period. Effective immediately, ASBD’s guidance provides that where write-downs have been required for properties that are beyond the five-year limit, banks may discontinue the required write-downs and hold the properties at current book value.