Federal Regulatory Agencies
News releases, reports, statements and associated documents from federal regulatory agencies ranging from the Securities Exchange Commission to the Commodities Futures Trading Commission
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Special Meeting of the SEC Chairman Clayton Small Business Capital Formation Advisory Committee Remarks
WASHINGTON, April 3 -- The Securities and Exchange Commission issued the following remarks by Chairman Jay Clayton on April 2:
We are facing an unprecedented national challenge--a health and safety crisis that has required all of us, for our own sake, the sake of our families and friends, and in fact the sake of all Americans, to significantly change our daily behavior. Many have made difficult personal sacrifices, and there have been many heroes in our collective fight against this virus--including our first responders, healthcare professionals, those who support them, and those who come to work
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WASHINGTON, April 3 -- The Securities and Exchange Commission issued the following remarks by Chairman Jay Clayton on April 2:
We are facing an unprecedented national challenge--a health and safety crisis that has required all of us, for our own sake, the sake of our families and friends, and in fact the sake of all Americans, to significantly change our daily behavior. Many have made difficult personal sacrifices, and there have been many heroes in our collective fight against this virus--including our first responders, healthcare professionals, those who support them, and those who come to workevery day to make sure our shelves our stocked, among many others. We should always recognize them.
Small businesses also have been, and will continue to be, significantly impacted as many small business owners are asked to make difficult personal and financial sacrifices. I believe what would be most helpful today is to hear more information and perspective from the Committee on the challenges impacting small businesses.
Over the past several weeks, I have shared more detailed personal views on the functioning of our capital markets, and the importance of those markets, in our national response to COVID-19./1 My view is that preserving the flows of credit and capital in our economy--to businesses and individuals alike--will help us better fight COVID-19, as well as speed and strengthen our recovery.
To most effectively respond to COVID-19, parts of our economy have been asked to function at full throttle, other parts to function differently (for example, teleworking rather than going to work in person) and other parts to stand down. Individuals and small businesses are facing hardship and uncertainty and many will need assistance to meet rent, payroll and many other cash needs.
Our SEC.gov landing page has an update of many of the SEC's efforts to date./2 These efforts have been targeted, balanced and timely. For example, last week, we provided targeted relief to companies with respect to certain filing obligations under Regulation A and Regulation Crowdfunding./3
I welcome your thoughts on other ways the Commission may be able to provide guidance to assist small businesses. Thank you.
Footnotes:
1/ See Chairman Jay Clayton, The Deep and Essential Connections Among Markets, Businesses, and Workers and the Importance of Maintaining those Connections in our Fight Against COVID-19 (Mar. 24, 2020), available at https://www.sec.gov/news/public-statement/statement-clayton-covid-19-2020-03-24.
2/ See SEC Coronavirus (COVID-19) Response, available at https://www.sec.gov/sec-coronavirus-covid-19-response.
3/ Relief for Form ID Filers and Regulation Crowdfunding and Regulation A Issuers Related to Coronavirus Disease 2019 (COVID-19), Release No. 33-10768 (Mar. 26, 2020), available at https://www.sec.gov/rules/interim/2020/33-10768.pdf.
SEC Chairman Clayton: Special Meeting of the Investor Advisory Committee
WASHINGTON, April 3 -- The Securities and Exchange Commission issued the following remarks by Chairman Jay Clayton on April 2:
I would like to thank you and your fellow Committee members for your prompt response to my request to hold a special meeting of the Investor Advisory Committee. You have assembled an impressive array of participants in a short time.
The purpose of this meeting is to hear from our Committee members and their invited guests regarding market- and investment-related issues facing our retail investors--our Main Street investors--as we collectively tackle the unprecedented
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WASHINGTON, April 3 -- The Securities and Exchange Commission issued the following remarks by Chairman Jay Clayton on April 2:
I would like to thank you and your fellow Committee members for your prompt response to my request to hold a special meeting of the Investor Advisory Committee. You have assembled an impressive array of participants in a short time.
The purpose of this meeting is to hear from our Committee members and their invited guests regarding market- and investment-related issues facing our retail investors--our Main Street investors--as we collectively tackle the unprecedentednational challenge posed by COVID-19.
Prior to the meeting, I posted more comprehensive remarks, and I have made various statements regarding COVID-19, including statements regarding: (1) the operational status of the Commission--we are functioning well, (2) my perspective on the importance of market function, and, earlier today, (3) resource allocation, Regulation Best Interest and Form CRS implementation and our near-term rulemaking agenda./1
Finally, before I turn back to Anne, I want to thank my colleagues in the Division of Corporation Finance for their proactive and investor-oriented approach to the pending earnings period. Our investors and our markets thirst for information as a general matter. This is particularly the case in times of economic shock and uncertainty. Couple this fundamental premise with the reality that for COVID-19-related reasons issuers may not be able to file required quarter-end reports on time, and we have a challenge. Importantly, an inability to file required reports does not prevent issuers from issuing earnings releases and filing current reports on Forms 8-K.
I believe the conditional, tailored relief crafted by the Division of Corporation Finance,/2 coupled with their detailed guidance/3 regarding COVID-19-related disclosure topics will allow issuers to provide prompt, period-end earnings information, and information regarding their past and expected future efforts to address the effects of COVID-19, regardless of whether they are able to comply with filing deadlines. We encourage issuers to provide as much information as is practicable and stand ready to engage with them./4
Taking a step back, and to provide focus, what I believe would be most helpful today is to hear your perspective on the day-to-day challenges impacting individual Main Street investors, and what more the SEC can do to help.
* * *
We are facing an unprecedented national challenge--a health and safety crisis that requires all Americans, for the sake of all Americans, to significantly change their daily behavior to comply with national, state and local directives and guidance. Many have made difficult personal sacrifices, and there have been many heroes in our collective fight against this virus--including our first responders, healthcare professionals, those who support them, and those who come to work every day to make sure our shelves our stocked, among many others. We should always recognize them.
Many of those directly impacted by COVID-19 are also Main Street investors. Over the past several weeks, the Commission and the staff have held numerous discussions with market participants--including investor and industry groups. These conversations have been insightful and helpful in allowing us to assess where to commit our resources. I expect this outreach from investor and industry groups to continue.
I would also like to provide an update on operations at the SEC and our response to COVID-19. Our efforts have been centered, first and foremost, on the health and safety of our employees and all Americans. Almost all of our workforce is under mandatory telework and has been focused on, among other things:
* Maintaining the continuity of Commission operations;
* Monitoring market functions and system risks;
* Providing prompt, targeted regulatory relief and guidance to issuers, investment advisers and other registrants impacted by COVID-19 to facilitate continuing operations, including in connection with the execution of their business continuity plans (BCPs); and
* Maintaining our enforcement and investor protection efforts, particularly with regard to the protection of our critical market systems and our most vulnerable investors.
The women and men at the SEC deserve a lot of the credit. We are not trading health and safety against performance. Rather, we are figuring out how we can most effectively execute our investor-oriented mission while following, and in some cases going beyond, health and safety guidance and directives.
Our SEC.gov landing page has an update of many of our efforts to date.[5] These efforts have been targeted, balanced and timely.
I hope we have a productive meeting and, most importantly, that our Main Street investors benefit from the efforts of the committee.
Footnotes:
1/ See Chairman Jay Clayton, Statement on the SEC's Coronavirus Response Efforts - Facilitating the Continued Orderly Operation of Our Capital Markets Consistent with Health and Safety Directives and Other Measures (March 20, 2020), available at https://www.sec.gov/news/public-statement/clayton-covid-19-2020-03-20; Chairman Jay Clayton, The Deep and Essential Connections Among Markets, Businesses, and Workers and the Importance of Maintaining those Connections in our Fight Against COVID-19 (March 24, 2020), available at https://www.sec.gov/news/public-statement/statement-clayton-covid-19-2020-03-24; Chairman Jay Clayton, Investors Remain Front of Mind at the SEC: Approach to Allocation of Resources, Oversight and Rulemaking; Implementation of Regulation Best Interest and Form CRS (April 2, 2020), available at https://www.sec.gov/news/public-statement/statement-clayton-investors-rbi-form-crs.
2/ Order under Section 36 of the Securities Exchange Act of 1934 Modifying Exemptions from the Reporting and Proxy Delivery Requirements for Public Companies, Release No. 34-88465 (Mar. 25, 2020), available at https://www.sec.gov/rules/exorders/2020/34-88465.pdf. The Commission extended targeted, conditional relief that provides an additional 45 days to file certain reports due between March 1, 2020 and July 1, 2020 for those issuers--and only those issuers--who are facing COVID-19 related operational challenges that prevent them from filing on time. We have put health and safety first here, but we have attached several conditions. Any company relying on this relief must publicly provide investors with a description of the reasons why it could not make the filing on a timely basis, the estimated date when the filing will be made, and company-specific risk factors explaining any material impact of COVID-19 on its business.
3/ Division of Corporation Finance, CF Disclosure Guidance: Topic No. 9 (March 25, 2020), available at https://www.sec.gov/corpfin/coronavirus-covid-19.
4/ The importance of this cannot be overstated--particularly as investors are looking for information about the material impacts of COVID-19 on U.S. companies. The guidance notes that disclosure about risks and effects of COVID-19, including how the company and management are responding to them, should be specific to a company's situation, and it provides detailed questions for companies to consider. For example, have your sources or uses of cash been materially impacted, or have you identified a material liquidity deficiency? Do you expect a material adverse impact to your supply chain or distribution channels? I believe that this combination of targeted relief and guidance is a model to follow as we think about what more we can do to help investors.
5/ See SEC Coronavirus (COVID-19) Response, available at https://www.sec.gov/sec-coronavirus-covid-19-response.
Remarks at Special Meeting of the SEC Commissioner Peirce Small Business Capital Formation Advisory Committee
WASHINGTON, April 3 -- The Securities and Exchange Commission issued the following remarks by Commissioner Hester M. Peirce at the special meeting of the Small Business Capital Formation Advisory Committee:
Thank you Carla [Garrett] for calling this ad hoc committee meeting. COVID-19 has up-ended everything about our lives in the last month. The temporary shutdown of the economy is particularly difficult for many small businesses, which are being forced to shut their doors, let employees go, and perhaps even completely cease operations. Cooperation, creativity, and flexibility can help us get
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WASHINGTON, April 3 -- The Securities and Exchange Commission issued the following remarks by Commissioner Hester M. Peirce at the special meeting of the Small Business Capital Formation Advisory Committee:
Thank you Carla [Garrett] for calling this ad hoc committee meeting. COVID-19 has up-ended everything about our lives in the last month. The temporary shutdown of the economy is particularly difficult for many small businesses, which are being forced to shut their doors, let employees go, and perhaps even completely cease operations. Cooperation, creativity, and flexibility can help us getthrough the current crisis and the transition back to normal economic activity. I am pleased that we are beginning that process by hearing directly from the committee on their ideas of how the Commission can help small businesses address their short-term capital needs to maintain their long-term viability.
Bold action will be necessary so, in brainstorming solutions, we ought not to tether ourselves to our existing framework. For example, I have previously advocated for a micro-offering exemption for entrepreneurs to raise small amounts of capital from the people that know them best. Could a micro-offering exemption assist the hundreds of thousands of restaurants and other local businesses that, while beloved by their communities, are not currently allowed to operate? Would getting such an exemption up and running on a pilot basis make sense at a time like this?
Last month the Commission proposed a number of amendments designed to harmonize, simplify, and improve the framework for private offerings./1 In light of the current environment, do those proposals go far enough to make exemptions such as Regulation A and Regulation Crowdfunding attractive to small businesses? Could we make temporary adjustments to these regulations to make them more useful in meeting pressing needs that cannot wait for the full rulemaking process to happen? Allowing businesses and investors to engage in capital-raising over the internet is just another way of practicing social distancing, so crowdfunding may have a bigger set of potential users now than it did two months ago.
We should think not only in terms of preserving existing businesses, but also about fostering entrepreneurial tendencies during a time when other opportunities are dwindling. As the ranks of unemployed swell and the prospects for working outside the home shrink, people may turn their time and talents toward building small businesses. I just heard, for example, about an Uber driver who is replacing his lost income by producing handcrafted masks.
In the midst of so much uncertainty, this Committee's work has only become more relevant. I am eager to hear the Committee's thoughts and observations today. For the members of the public that are listening or watching online, to the extent you have ideas that you would like to share, I urge you to reach out to me, my fellow Commissioners, and Martha Miller's office. Thank you.
Footnote:
1/ Press Release, SEC Proposes Rule Changes to Harmonize, Simplify and Improve the Exempt Offering Framework, available at https://www.sec.gov/news/press-release/2020-55.
Investors Remain Front of Mind at the SEC Chairman Clayton: Approach to Allocation of Resources, Oversight and Rulemaking
WASHINGTON, April 3 -- The Securities and Exchange Commission issued the following statement by Chairman Jay Clayton on April 2:
* * *
- Implementation of Regulation Best Interest and Form CRS
* * *
Over 57 million American households are invested in our securities markets. The interests of these individuals--our long-term Main Street investors--are the lens through which we evaluate whether we are effectively advancing the SEC's mission. The 4,500 women and men of the SEC are committed to these investors and the integrity of our markets. The uncertainties caused by COVID-19 have not changed
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WASHINGTON, April 3 -- The Securities and Exchange Commission issued the following statement by Chairman Jay Clayton on April 2:
* * *
- Implementation of Regulation Best Interest and Form CRS
* * *
Over 57 million American households are invested in our securities markets. The interests of these individuals--our long-term Main Street investors--are the lens through which we evaluate whether we are effectively advancing the SEC's mission. The 4,500 women and men of the SEC are committed to these investors and the integrity of our markets. The uncertainties caused by COVID-19 have not changedour perspective or commitment.
Approach to Allocation of Resources, Oversight and Rulemaking
In recent weeks, the Commission has been assisting market participants in their efforts to continue business operations, including investor service operations, in the face of various challenges caused by COVID-19./1 Many of our actions have focused on operational issues, including facilitating the shift to business continuity plans that are consistent with health and safety directives and guidance. For example, we have worked with various market participants to help facilitate the move by securities exchanges to an all-electronic trading environment./2 Other actions have involved targeted, conditional and temporary relief relating to filing deadlines that could be significantly impacted by COVID-19./3
In addition, as the effects of COVID-19 became more apparent, the public was notified that, although comment periods on a variety of proposed actions had closed (or would close) in March 2020, the Commission would not take final action on those items in the coming weeks to allow potential commenters more time to submit comments for consideration if needed./4 We do not expect to move forward on any of those proposed actions before May 1, 2020.
Our general approach in these unprecedented circumstances is premised on putting health and safety first, as well as our firm message that the law continues to apply. We continue to allocate our resources in the best interests of investors and our capital markets, with investor protection and market integrity front of mind. Recognizing that challenges may impact the timing of certain filings, we also are keenly focused on ensuring that issuers and other registrants continue to provide material information to investors, including information related to the current and expected effects of COVID-19, as promptly as practicable. In this regard, we have reminded public companies and other persons to continue to evaluate their obligations to make materially accurate and complete disclosures in accordance with the federal securities laws./5 And Commission staff provided guidance to assist issuers as they consider their disclosure obligations in connection with their assessment of the potential effects of COVID-19 on their operations./6
It is my intent to continue to apply this pragmatic, flexible, facts-and-circumstances approach to our allocation of resources and actions during this uncertain period, taking into account the advice and expertise of my fellow Commissioners and our staff, as well as the views of market participants. In light of the dynamic nature of current circumstances, our allocation of resources may change. In addition, we expect to provide similar, targeted relief, and make similar adjustments to timeframes, where necessary or appropriate. Importantly, we continue to encourage engagement from market participants, including, in particular, investors. For example, at my request, the Investor Advisory Committee will hold a meeting today to discuss, in part, the impact of COVID-19 on investors./7*
Regulation Best Interest and Form CRS
Financial professionals are required to never put their interests ahead of the interests of their clients and customers; and the confidence that this bedrock principle gives to those more than 57 million households I mentioned is particularly important in these times of economic uncertainty. Understanding this, on June 5, 2019, the Commission adopted Regulation Best Interest ("Reg BI")./8 Reg BI establishes a new standard of conduct for broker-dealers and their associated persons when making a recommendation of any securities transaction or investment strategy involving securities (including account recommendations) to a retail customer.
At any time, and particularly in times of uncertainty, investment professionals should not put their interests ahead of the interests of their clients and customers. Reg BI codifies this fundamental principle. Investors should also know the services they are receiving and how they will be charged for those services. Form CRS requires that.
Reg BI is a key component of a broader package of rules and interpretations, adopted contemporaneously, to enhance the quality and transparency of retail investors' relationships with broker-dealers and investment advisers. Form CRS and its related rules require SEC-registered investment advisers and SEC-registered broker-dealers (together, "firms") to deliver to retail investors a brief customer or client relationship summary that provides information about the firm./9 Firms must file their relationship summaries with the Commission. Collectively, these regulatory actions bring the legal requirements and mandated disclosures for broker-dealers and investment advisers in line with reasonable investor expectations, while preserving retail investor access (in terms of both choice and cost) to a variety of investment services and products./10
Over the past ten months, the Commission and the staff have engaged extensively with broker-dealers, investment advisers, retail investors and other market participants, as well as FINRA and other regulatory partners, regarding the implementation of Reg BI and Form CRS./11 We believe firms with account relationships comprising a substantial majority of retail investor assets have made considerable progress in (1) adjusting their business practices, (2) supplementing and modifying their policies and procedures, and (3) otherwise aligning their operations and preparing for the requirements of Reg BI and the obligation to file and begin delivering Form CRS.
Based on that engagement--and because the continued implementation of these conduct and transparency initiatives, individually and collectively, will significantly benefit Main Street investors--we believe that the June 30, 2020 compliance date for Reg BI and other requirements, including the requirement to file and begin delivering Form CRS, remains appropriate.
Applying the general approach outlined above to Reg BI and Form CRS, firms should continue to make good faith efforts around operational matters to ensure compliance by June 30, 2020, including devoting resources as necessary and available in light of the circumstances. To the extent that a firm is unable to make certain filings or meet other requirements because of disruptions caused by COVID-19, including as a result of efforts to comply with national, state or local health and safety directives and guidance, the firm should engage with us. I expect that the Commission and the staff will take the firm-specific effects of such unforeseen circumstances (and related operational constraints and resource needs) into account in our examination and enforcement efforts.
With regard to continued engagement on Reg BI and Form CRS related matters, the SEC is functioning well in a mandatory telework environment. Our staff is continuing to work collectively on Reg BI examination scoping and will continue to work closely with FINRA to help ensure consistency in examining firms and their associated persons for compliance with Reg BI and Form CRS. The Commission and staff also welcome continued engagement from investors and other market participants on the implementation of Reg BI and Form CRS.
During the initial period following the compliance date, SEC examiners will be focusing on whether firms have made a good faith effort to implement policies and procedures necessary to comply with Reg BI, while also providing an opportunity to work with firms on compliance and other questions. SEC staff in the Office of Compliance Inspections and Examinations has informed me that they will be issuing two Risk Alerts in the coming days to provide additional information. One provides broker-dealers with specific information about the scope and content of initial examinations for Reg BI. The other provides broker-dealers and investment advisers with similar information with respect to Form CRS.
In addition, the Commission and its staff have provided a number of other resources to assist firms in understanding the new requirements and working toward implementation:
* A dedicated SEC mailbox for firms and others to submit questions: IABDquestions@sec.gov
* A Small Entity Compliance Guide on Regulation Best Interest, available here (https://www.sec.gov/info/smallbus/secg/regulation-best-interest)
* Staff answers to frequently asked questions, available here (https://www.sec.gov/tm/faq-regulation-best-interest)
* A Spotlight Page for relevant materials including releases, comment letters, speeches, press releases and transcripts, available here (https://www.sec.gov/regulation-best-interest)
In summary, we recognize that Reg BI and Form CRS are significant regulatory enhancements and that firms have dedicated, and are continuing to dedicate, substantial time and resources to comply with the new requirements. Investors have and will continue to benefit from these efforts. These efforts--and importantly their aim: to align conduct and disclosure requirements with reasonable investor expectations--should continue on course to the extent possible under the circumstances. We remain committed to assisting firms and other market participants in completing this important effort.
Footnotes:
1/ See https://www.sec.gov/sec-coronavirus-covid-19-response for a discussion of the Commission's efforts in response to the effects of COVID-19.
2/ Relatedly, Commission staff issued a statement indicating that it would not recommend enforcement action against industry members for failure to enforce the CAT implementation deadlines so that attention can be focused on operational readiness and business continuity plans. See Division of Trading and Markets No Action Letter: Consolidated Audit Trail Reporting, available here.
3/ See https://www.sec.gov/sec-coronavirus-covid-19-response.
4/ See https://www.sec.gov/rules/proposed.shtml.
5/ See https://www.sec.gov/rules/exorders/2020/34-88465.pdf.
6/ See https://www.sec.gov/corpfin/coronavirus-covid-19.
7/See https://www.sec.gov/news/openmeetings/2020/ssamtg040220iac.htm.
8/ See Regulation Best Interest, Exchange Act Release No. 86031 (June 5, 2019) (adopting rule 15l-1 under the Exchange Act), available here. (https://www.sec.gov/rules/final/2019/34-86032.pdf)
9/ See Form CRS Relationship Summary; Amendments to Form ADV, Exchange Act Release No. 86032, Advisers Act Release No. 5247 (June 5, 2019), available here.
10/ Along with adopting Regulation Best Interest and Form CRS, the Commission also provided interpretations: (1) reaffirming and in some cases clarifying standards of conduct for investment advisers, and (2) regarding when a broker-dealer's advisory services are solely incidental to the conduct of the business of a broker or dealer. See Commission Interpretation Regarding Standard of Conduct for Investment Advisers, Advisers Act Release No. 5248 (June 5, 2019), available here; Commission Interpretation Regarding the Solely Incidental Prong of the Broker-Dealer Exclusion to the Definition of Investment Adviser, Advisers Act Release No. 5249 (June 5, 2019), available here. (https://www.sec.gov/rules/interp/2019/ia-5248.pdf) These interpretations are currently effective.
11/ See e.g. staff responses to frequently asked questions on Regulation Best Interest, available here. (https://www.sec.gov/tm/faq-regulation-best-interest)
FDIC: New SBA and Treasury Programs Available for Small Business Relief
WASHINGTON, April 3 -- The Federal Deposit Insurance Corporation issued the following financial institution letter (No. FIL-33-2020):
Summary:
The FDIC is advising financial institutions of multiple forms of relief available in the Coronavirus Aid, Relief, and Economic Security (CARES) Act to small businesses through programs administered by the Small Business Administration (SBA). The U.S. Department of the Treasury (Treasury) also offers small business loan programs. The FDIC encourages financial institutions to consider using these programs in a prudent manner as they actively work with small
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WASHINGTON, April 3 -- The Federal Deposit Insurance Corporation issued the following financial institution letter (No. FIL-33-2020):
Summary:
The FDIC is advising financial institutions of multiple forms of relief available in the Coronavirus Aid, Relief, and Economic Security (CARES) Act to small businesses through programs administered by the Small Business Administration (SBA). The U.S. Department of the Treasury (Treasury) also offers small business loan programs. The FDIC encourages financial institutions to consider using these programs in a prudent manner as they actively work with smallbusiness borrowers with less financial flexibility to weather near-term operational challenges due to the Coronavirus Disease 2019 (referred to as COVID-19).
Statement of Applicability to Institutions under $1 Billion in Total Assets: This Financial Institution Letter (FIL) applies to all FDIC-supervised institutions.
Highlights:
* The FDIC encourages financial institutions to consider the relief available to small businesses through new programs administered by the SBA, and more fully described at https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources.
* These SBA programs include:
* The Economic Injury Disaster Loan program under Section 7(b) of the Small Business Act, which provides funds to small businesses to cover economic injury resulting from the disaster, such as a loss of revenue; and
* The Paycheck Protection Program, which provides loans to encourage certain qualified small businesses to retain employees through the COVID-19 pandemic and includes loan forgiveness subject to certain conditions.
* The SBA is streamlining its processes to enable more financial institutions to use these programs for small business borrowers affected by COVID-19.
* Beginning April 3, 2020, the FDIC will post on our Coronavirus (COVID-19) webpage updated program information from the SBA for financial institutions that want to learn how to access its new programs.
* Information regarding the Treasury's small business loan programs is available.
* The FDIC will not criticize financial institutions' good faith efforts to prudently use the SBA and Treasury programs to work with small business borrowers affected by COVID-19.
Distribution:
* FDIC-Supervised Banks
Suggested Routing:
* Chief Executive Officer
* Chief Credit Officer
* Chief Risk Officer
Related Topics:
* Interagency Statement on Pandemic Planning
* FDIC Statement on Financial Institutions Working with Customers Affect by the Coronavirus and Regulatory and Supervisory Assistance
* Interagency Statement on Loan Modifications by Financial Institutions Working with Customers Affected by the Coronavirus
* FAQs for Financial Institutions Affected by the Coronavirus
Contact:
* Beverlea S. Gardner, Senior Examination Specialist, (202) 898-3640 or Bgardner@fdic.gov
* Paola Diaz, Senior Community Affairs Specialist, (202) 898-7184 or Pdiaz@fdic.gov
* FDIC Office of the Ombudsman, (877) 275-3342 or ombudsman@fdic.gov
Note:
Access FDIC Financial Institution Letters (FILs) on the FDIC's website
Subscribe to receive FILs electronically
Paper copies of FDIC FILs may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (877-275-3342 or 703-562-2200).
Carr Statement: FCC Fights Coronavirus With $200 Million
WASHINGTON, April 3 -- The Federal Communications Commission issued the following statement on April 2 by Commissioner Brendan Carr:
* * *
- Adopts Long-Term Connected Care Study
* * *
Re: Promoting Telehealth for Low Income Americans, WC Docket No. 18-213; COVID-19 Telehealth Program, WC Docket No. 20-89.
Since joining the Commission, I have spent a lot of time outside of D.C. I can think of no better way to inform the work we do here at the FCC than to hear directly from the Americans we serve in their own communities. Few trips have made as much of an impression on me as the time I spent
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WASHINGTON, April 3 -- The Federal Communications Commission issued the following statement on April 2 by Commissioner Brendan Carr:
* * *
- Adopts Long-Term Connected Care Study
* * *
Re: Promoting Telehealth for Low Income Americans, WC Docket No. 18-213; COVID-19 Telehealth Program, WC Docket No. 20-89.
Since joining the Commission, I have spent a lot of time outside of D.C. I can think of no better way to inform the work we do here at the FCC than to hear directly from the Americans we serve in their own communities. Few trips have made as much of an impression on me as the time I spentin Mississippi with Senator Wicker.
On one of those trips, I visited the Mississippi Delta, which sits in the northwest corner of the Magnolia State. It's a part of the country with a deep and rich history. And it is not exempt from the many healthcare challenges that Americans face in communities around the country. Take Ruleville, Mississippi which sees diabetes rates about twice the national average. It also has among some of the highest poverty rates in the country, only adding to the difficulty in finding adequate health care.
In Ruleville I met Miss Annie, a patient at the North Sunflower Medical Center. One day, Miss Annie suddenly woke up with blurred vision, and after seeing her doctor found out she had advanced diabetes. She tried treating it through traditional methods of care, but didn't see much progress. She then signed up for a ground-breaking telehealth program being run in conjunction with the University of Mississippi Medical Center. She was sent home with a tablet and a wireless-powered blood glucose monitor. Every morning her tablet chimes as a reminder, Miss Annie pricks her finger, and her tablet then displays her glucose number, which is then reported back via a wireless connection to her doctors. Based on that reading, an app on the tablet suggests appropriate actions--from a particular food or exercise, to watching a relevant video. If she forgets, she gets a call from a nurse. With this technology, her A1C levels have gone down, and Miss Annie says she's never felt better
.
As I've traveled around the country, I've seen just how widely these connected care and remote patient monitoring applications can be used to treat a variety of conditions. These tools help bring medical care directly to patients, no matter where they are. It's the health care equivalent of moving from Blockbuster to Netflix. Patients in rural regions often have to drive hours to see doctors at a major medical center, increasing the costs in both dollars and time--and making it less likely that they will diligently follow through on their treatment.
When I was in Laurel Fork, Virginia, which sits near the heart of Appalachia, I met a woman named Cathleen who told me that she struggled for years with uncontrolled diabetes. She had been diagnosed five years before, and receiving treatment meant a two-hour round trip drive to see a doctor. Finding transportation and getting to the clinic wasn't easy, so, like many others dealing with chronic conditions, Cathleen stopped going in for treatment for a few years. When she went back to the doctor, her A1C levels--the blood glucose levels used to indicate diabetes--had skyrocketed to 15.5. Levels that high are considered critical and are commonly followed by strokes and heart attacks. So, her doctor signed her up for remote patient monitoring technologies similar to the ones that had been used by Miss Annie. Through those connected devices, Cathleen's vitals were monitored daily and checked by a team of endocrinologists and specialists at the Laurel Fork community health center and the University of Virginia. After six months her A1C dropped to 7.5, and she has enough energy to run and play with her three grandkids.
Connected Care is not just for treating chronic diseases like diabetes. At the UVA Children's Hospital, Dr. Karen Rheuban told me about their pediatric cardiology program, which brings high-tech care to the home. With a connected tablet and a Locus Health app, daily weight, heart rate, and oxygen levels can be tracked remotely, which decreases the need for high-risk pediatric patients to undergo ICU stays and invasive procedures. From diabetes, to heart disease, pulmonary disorders, mental health, high-risk pregnancy, and even pandemic response, Connected Care opens new opportunities for patients to get better results with less expense and hassle.
For years, the FCC has focused its telehealth work on funding high-speed connections to brick and mortar facilities. While that important work continues, I thought it was important that the FCC start a proceeding that supports this new trend in telehealth towards connected care everywhere. I am grateful that Chairman Pai asked me to lead this FCC initiative and for his strong commitment to this work. Notably, we are focusing this $100 million pilot on low-income Americans and veterans. This is important because as next-generation care rolls out across the country, this Pilot can play a role in helping to ensure every American has a fair shot at these potentially life-changing and life-saving technologies.
We also move forward today mindful of the coronavirus that is now spreading across the country. It has placed America in uncharted territory. It has disrupted our daily lives. It has cost many of our fellow countrymen their jobs and income. And it threatens to overwhelm our health care system. That's why we're also immediately establishing a COVID-19 Emergency Telehealth Support Program that will fast-track $200 million in support toward the use of connected care technologies to treat COVID-19 patients or to free up space and resources in health care facilities for COVID-19 patients.
The COVID-19 Emergency Telehealth Support Program and Connected Care Pilot are linked. We were able to move so quickly on the COVID-19 Program--acting just days after the CARES Act was signed into law providing the $200 million in funding for that program--because of the work we have been doing at the FCC over the past two years on the Connected Care Pilot. The rulemaking record we developed in the Connected Care Pilot proceeding provides the vehicle that now enables us to enact the COVID-19 Program. Without the Connected Care Pilot, we would not have been able to adopt the COVID-19 Program today. That would have needlessly delayed the positive impact that this funding will play in quickly supporting our health care heroes in their work to combat the coronavirus. So I am glad that our prior legwork is paying off today.
I am also pleased that we are moving forward now with the Connected Care Pilot for another reason. This $100 million program can make a real difference on its own in supporting care for low-income Americans and veterans. Putting off the day that these funds can start supporting quality and affordable care, when the need remains so great, would not have been the right call. And the ideas we adopt in this portion of our decision are familiar ones--having been vetted through both a Notice of Inquiry and Notice of Proposed Rulemaking process.
Both programs also rest squarely within the FCC's legal authority. With respect to the Connected Care Pilot, in particular, Section 254(h)(2)(A) of the Communications Act expressly directs the Commission to "establish competitively neutral rules[ ] to enhance, to the extent technically feasible and economically reasonable, access to advanced telecommunications and information services for all public and nonprofit . . . health care providers." As the Order explains, the specific services and network equipment funded under the Connected Care Pilot Program are within the scope of our statutory directive under section 254(h)(2)(A) to enhance eligible health care providers' access to advanced telecommunications and information services. Indeed, the FCC previously relied on this grant of authority when it established an earlier telehealth pilot program.
Given the scope of our authority here, the Connected Care Pilot Program will support a variety of health care providers in their experiments to build on the successes we've already seen in improving patient outcomes, while lowering costs. For instance, the Veterans Health Administration's remote patient monitoring program resulted in a 25% reduction in days of inpatient care and a 19% reduction in hospital admission for more than 43,000 veterans. It also cost $1,600 per patient compared to more than $13,000 per patient for VHA's home-based primary services. Another remote patient monitoring initiative showed a 46% reduction in ER visits, a 53% reduction in hospital admissions, and a 25% shorter length of stay. Analysts estimate that the widespread use of remote patient technology and virtual doctor visits could save the American health care system $305 billion annually. I am very excited to see these results replicated throughout the country, so all Americans can reap the benefits.
I want to thank Chairman Pai for fast-tracking the FCC's consideration of this initiative and my FCC colleagues for moving quickly to vote on this important decision. While the two programs have much in common, they also different in a few respects. For example, we are able to fund connected devices in the COVID-19 program given the specific language in the CARES Act, while the $100 million Connected Care initiative does not provide funding for them. The Order itself lays out additional differences.
In standing up today's decision, we have engaged with other expert agencies, including the Department of Health and Human Services and the Department of Veteran Affairs. The Order before us today benefited greatly from the ideas and perspectives shared by health care experts in those agencies.
I also want to extend my gratitude to the FCC team that worked so hard on this Order both in the past few days and weeks, but also over the past two years that allowed us to reach this decision today.
Thank you to Allison Baker, Regina Brown, Rashann Duvall, Darren Fernandez, Trent Harkrader, Kris Monteith, Ryan Palmer, Joseph Schlingbaum, and Hayley Steffen in the Wireline Competition Bureau; Malena Barzilai, Michael Carlson, Thomas Johnson, Andrea Kelly, Richard Mallen, and Linda Oliver in the Office of General Counsel; Octavian Carare, Stacey Jordan, Giulia McHenry, Eric Ralph, Steven Rosenberg, Emily Talaga, and Tracy Waldon in the Office of Economics and Analytics; Deena Shetler and Cara Voth in the Office of the Managing Director; and Dr. David Ahern, Ben Bartolome, Michele Ellison, Dr. Chris Gibbons, and Karen Onyeije on the Connect2Health Task Force.
I look forward to working with health care providers that want to apply for funding under these initiatives and seeing the positive impact that will be made.
CFTC, 4 Agencies Will Consider Comments on Volcker Rule Modifications Following Expiration of Comment Period
WASHINGTON, April 3 -- The Commodity Futures Trading Commission issued the following news release with four agencies - Federal Reserve Board, Federal Deposit Insurance Corporation, Office of Comptroller of the Currency and Securities and Exchange Commission:
Five federal financial regulatory agencies on Thursday announced that they will consider comments submitted before May 1, 2020, on their proposal to modify the Volcker rule's general prohibition on banking entities investing in or sponsoring hedge funds or private equity funds--known as "covered funds."
The agencies will continue to consider
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WASHINGTON, April 3 -- The Commodity Futures Trading Commission issued the following news release with four agencies - Federal Reserve Board, Federal Deposit Insurance Corporation, Office of Comptroller of the Currency and Securities and Exchange Commission:
Five federal financial regulatory agencies on Thursday announced that they will consider comments submitted before May 1, 2020, on their proposal to modify the Volcker rule's general prohibition on banking entities investing in or sponsoring hedge funds or private equity funds--known as "covered funds."
The agencies will continue to considercomments to provide interested persons more time to analyze the issues and prepare their comments in light of potential disruptions resulting from the coronavirus.
The proposal asked for comments to be submitted by April 1, 2020.
The agencies will continue to work together on policy issues as the coronavirus pandemic unfolds.
