InfoBytes Blog
Filter
Subscribe to our InfoBytes Blog weekly newsletter and other publications for news affecting the financial services industry.
Washington offers temporary no-action relief for registrants affected by the Covid-19 outbreak
On March 24, the Washington State Department of Financial Institutions, Securities Division (DFI) announced it will take no action to enforce various provisions of the Securities Act in response to the Covid-19 crisis. This includes offering relief for: (i) registration and filing requirements for professionals required to be registered with the division; (ii) the requirement to obtain physical signatures on the U4 form (Uniform Application for Securities Industry Registration or Transfer); and (iii) annual update filings and document delivery requirements by state-registered investment advisers.
Financial professionals who rely on such no-action relief must keep a copy of the state order in their records to demonstrate their reliance on it. This no-action relief will remain in effect until April 30, 2020, unless extended or rescinded.
Vermont governor issues “stay home/stay safe” order
On March 25, Governor Scott issued an executive order directing all citizens to stay at home, leaving only for essential reasons. All businesses and not-for-profit entities must suspend in-person business operations, with limited exceptions, and are encouraged to develop on-line, telephone and web-based strategies. Banks and financial institutions are considered essential, but the order limits routine retail banking operations to transactions conducted through automated teller machines, drive-through services and online and telephone services order . The order is effective on March 25 at 5pm ET, and is in place until April 15.
Arkansas State Bank Department releases Covid-19 contingency plan
The Arkansas State Bank Department issued a “Coronavirus Contingency Plan” on March 11, with updates on March 16, March 18, and March 23. The communications instruct banks to promptly notify the Deputy Commissioner by email if branch facilities or markets must be closed and encouraged them to work with affected customer and communities. These efforts should include, among other things, waiving fees, increasing ATM cash withdrawal limits, easing restrictions on cashing checks, increasing credit card limits, and offering payment accommodations to assist members having payment difficulty. The guidance also noted that “prudent efforts” to modify loan terms would not be subject to examiner criticism, and institutions can ease their terms for new loans consistent with prudential banking practices. The Department also committed to work with affected institutions to reduce burden when scheduling examinations and inspections, utilize off-site reviews, and work with institutions experiencing difficulties fulfilling reporting requirements.
California DBO issues guidance on securities and franchise filings
On March 22, the California Department of Business Oversight issued notice urging securities and franchise filers to submit filings electronically and request waivers of automatic effectiveness for paper filings. The notice also provides that effective immediately the DBO will accept use of e-signature software in lieu of notarization and will waive the additional filing fee for renewals filed after franchise registration has lapsed through June 30.
Arizona Governor exempts essential businesses from shelter-in-place orders
On March 23, the Arizona Governor ordered that local jurisdictions may not prohibit essential functions and must coordinate any orders restricting movement outside the home with the state health department. The order identifies financial institutions as an essential business and operation.
Alaska requires entrants to self-quarantine unless they support critical infrastructure
On March 23, the Alaska Governor ordered all people arriving in Alaska, including residents, workers, and visitors, to self-quarantine for 14 days unless they support critical infrastructure. The “financial services sector” is identified as a critical industry not subject to the quarantine requirement. The order took effect on March 25.
Alabama Securities Commission will conduct exams remotely
On March 23, the Alabama Securities Commission released information about changes to its work practices to respond to Covid-19. Among other things, it noted that audit field examiners are conducting streamlined, remote examinations by phone and email, and its staff will be responsive and receptive to requests for extensions and other regulatory relief.
NYDFS suspends license expiration for individual insurance producers for 60 days
On March 25, the NYDFS suspended the license expiration of all individuals who are licensed insurance producers – brokers, agents, intermediaries and other persons required to be licensed in order to sell, solicit or negotiate insurance in New York – for 60 days. The NYDFS issued the temporary suspension in light of the hardship that individuals may face obtaining the continuing education credits required for license renewals. At the end of this 60-day period, all licenses that would have expired without the extension will automatically expire unless the producer has submitted a license renewal application and completed all necessary continuing education credits.
Federal Reserve Board files reports with Congress on newly established lending facilities
On March 25, the Federal Reserve Board filed three reports to Congress pursuant to Section 13(3) of the Federal Reserve Act on the Primary Dealer Credit Facility, the Commercial Paper Funding Facility, and the Money Market Mutual Fund Liquidity Facility. Each report provides Congress with details on the facilities, including the structure and basic terms of the facilities. The announcement of the lending facilities was previously covered here.
NCUA issues FAQs regarding Covid-19 and credit union operations
On March 25, the National Credit Union Administration (NCUA) issued FAQs regarding the impact of Covid-19 on the NCUA and credit union operations. The FAQs answer questions regarding, among other things, flexibility for federal credit unions in planning annual meetings and monthly board of director meetings, restrictions on access to or closure of facilities, the impact of Covid-19 on the NCUA’s examination and supervision program, and deadlines for submission of certain filings (e.g., Call Reports, annual capital plan and/or stress testing, Bank Secrecy Act reports).