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Federal Court Issues Administrative Stay of Vaccine MandateA federal appellate court on Saturday issued an administrative stay of enforcement of the emergency temporary standard that will require all employers with 100 or more employees to be fully vaccinated or test weekly for COVID-19. The stay—which appears to apply nationwide—was issued in response to a legal challenge to the ETS filed by several governors and private entities. Under the standard—which was developed by the Occupational Safety and Health Administration at the direction of President Biden—employees of covered firms would have until Jan. 4 to receive the vaccine or be required to produce a negative test on “at least a weekly basis.” Although the court’s stay is administrative in nature, to allow for the parties to brief the challengers’ emergency motion, the court stated that “the petitions give cause to believe there are grave statutory and constitutional issues with the [vaccine] Mandate . . . .” Challenges to the standard have been brought in at least five federal appellate courts. A random draw will be held to determine which appellate court will hear the case. In light of the possibility that the ETS may be permanently enjoined, banks may wish to consider carefully the resources and effort they expend at this time to develop a program in anticipation of compliance with the ETS. For more information, contact ABA’s Tom Pinder or Jonathan Thessin. ABA: 'Whole-of-Government' Approach Needed to Address Chip ShortageWith millions of microchips needed annually to equip smart chip payment cards, ABA yesterday told the Commerce Department that a “whole-of-government approach” is needed to weather the expected shortages in the global chip supply. Large numbers of chip cards need to be replaced each year as they expire, ABA said, adding that without a sufficient supply of chips, some consumers and businesses may not receive a timely replacement of an expired, lost or stolen payment card. ABA said the federal government should adopt an approach that treats all industries that rely on semiconductors equitably, “rather than prioritiz[ing] access by certain industries to domestic and foreign chip suppliers and manufacturers.” Over the longer term, ABA said that Congress should foster growth in America’s domestic semiconductor production capability to ensure that all stakeholders can access a reliable supply of chips. Read more.
OCC's Hsu: Bank Board Guidance on Climate Risk Coming SoonIn remarks Monday at the OCC, Acting Comptroller Michael Hsu indicated that the agency plans to address climate change risk regulation with high-level framework guidance and five “range of practices” questions for large-bank boards by the end of 2021. The questions are intended to spur conversations at the board level with management and to inform more detailed guidance that would likely be developed in 2022. Examinations based upon the guidance will follow after the more detailed guidance in 2022, and a focus on climate risk and midsize and smaller banks will follow after that, he said. Hsu committed to taking a deliberate, phased and data-driven approach to understanding the financial risks and opportunities posed by climate change and the transition to a lower-carbon economy. He also noted that each bank is unique with different customers and business lines and that it is important to ensure that any consideration of climate risk as a supervisory issue is appropriate and tailored, based on the size, complexity and location of the institution. Read the speech. For more information, contact ABA’s Joe Pigg. FinCEN Updates Ransomware AdvisoryThe Financial Crimes Enforcement Network on Monday released an updated advisory on ransomware and the use of the financial system to facilitate ransom payments. The updated advisory includes new information on current trends and typologies of ransomware and associated payments as well as recent examples of ransomware attacks. The advisory also provides financial red flag indicators of ransomware-related illicit activity to assist financial institutions in identifying and reporting suspicious transactions associated with ransomware payments. Read more. Article Explores How Veterans Can be Mission Critical for Bank BoardsWhen Baltimore-based Howard Bank set out to fill a board seat, hiring a veteran was not on the checklist, but it turns out that was exactly the type of person they were looking for, writes Debra Cope in a new article in the ABA Banking Journal. The bank ended up hiring Linda Singh as its newest director and it was her distinguished career in the Maryland Army National Guard that emerged as one of her outstanding attributes, the article states. Singh, who retired from military service after 28 years in 2019, was the first woman and the first African American to hold the command of adjutant general of Maryland. “The qualities veterans develop make them really good board candidates,” said Naomi Mercer, ABA’s SVP for diversity, equity and inclusion and an Army veteran. “They’re good under pressure, they understand strategy, they know how to assess risk, and they don’t do things in lockstep. When you give soldiers a mission and autonomy about how to execute it, they will surprise you every time with their innovation.” Read the article.
ABA Foundation Releases Whitepaper on Expanding Financial Services Access for Justice System-Involved IndividualsThe ABA Foundation today released a new whitepaper entitled “Strategies to Expand Financial Services Access for Individuals Involved in the Criminal Justice System” that explores common barriers justice system-involved individuals face when trying to gain entry to the financial system following the completion of their sentence. By profiling existing bank initiatives, the report also outlines potential strategies banks can use to expand financial services access to this often unbanked and underserved population and play a supporting role in the reentry process. The whitepaper cites five primary barriers to financial access for the millions of justice system-involved individuals in the U.S. They include a lack of valid identification or permanent address, prior problems managing a bank account, misperceptions that a conviction record will disqualify someone from opening an account, levies on bank accounts or court garnishment orders because of past-due debt, and high levels of fear or anxiety around banking services. “As an industry committed to financial inclusion, we need to understand and address the obstacles preventing justice-involved Americans from accessing the financial services they need,” said Corey Carlisle, executive director, ABA Foundation. “This new whitepaper examines those barriers and identifies several bank initiatives that could help reduce them. We hope these real-world case studies inspire other financial institutions to consider how they can assist justice-involved individuals within their own communities.” For people on work release, under supervision or rejoining the workforce after completing their sentence, the ability to cash a check without the high fees associated with non-bank services is incredibly important. One type of depository bank account that can be useful for justice-involved populations are Bank On-certified accounts, which offer low costs, no overdraft fees, robust transaction capabilities such as a debit card and online bill pay. Another option to address this issue is for banks to create partnerships with local or state department of corrections to allow certain justice-involved people to cash certain kinds of checks. To read the full whitepaper and view the accompanying infographic, visit aba.com. Racism and the Economy: Focus on Financial ServicesThe Federal Reserve Banks will hold the virtual video event Racism and the Economy: Focus on Financial Services on Tuesday, Nov. 16, at 11 a.m. to 1 p.m. CST. This session will examine structural racism in our financial services system and its impact on the economy. The Federal Reserve will survey historical and present-day barriers to traditional financial services that exist for people of color, which can drive them into expensive and sometimes exploitative alternatives. This session will envision new products and practices, prioritizing people and places that have experienced chronic disinvestment and exclusion. It will explore ways to address root causes that can result in more equitable access to financial services and help close these gaps. Leaders from financial institutions, consumer protection organizations, research institutions and others will explore ways that we can fully support consumers and financial service providers to ultimately help facilitate an economy that works for all. Register for the event.
SDBA to Hold Virtual IRA Basic Seminar in DecemberThe SDBA will hold the IRA Basic Seminar on Dec. 7 and 9 virtually via Zoom. Times on both days are 9 a.m. to noon CST. IRA Essentials gives attendees a solid foundation of IRA knowledge. Real case problems and examples are included throughout the day to help participants apply information to job-related situations. Attendees will leave this session able to work with IRA holders and process basic IRA transactions with confidence. This course goes in a logical order from opening an IRA, to talking about contribution rules, then on to distribution rules and regulations, which includes RMDs and death distributions. The course will also address moving money as a transfer or rollover The course is for all new IRA staff, people who are in a backup position or an IRA support person wanting to stay current. This is also a great review course for those who have been away from IRAs for a couple of years. Learn more and register.
Question of the Week
Question: Can you give us some tips drafting an MSA for a joint advertising campaign to avoid a RESPA Section 8 issue? Answer: As I am sure you have found, "marketing services agreements" is definitely a hot topic. It is still unclear to what extent this may be an issue for Section 8 purposes. Joint advertising in and of itself isn't a violation of RESPA Section 8 if each party is paying the market value for their pro rata share of the advertisement, so the bank should at least pay for its share of the ad and, of course, document how and why it isn't a referral fee. You should also make sure that there is no 'quid pro quo' in this arrangement. In other words, for example, an agreement that says that if the bank pays for part of the advertising space, the individual would send the bank referrals. In 2015, 5he CFPB put out “RESPA Compliance and Marketing Services Agreements” at http://files.consumerfinance.gov/f/201510_cfpb_compliance-bulletin-2015-05-respa-compliance-and-marketing-services-agreements.pdf to delve into the issue. In 2020, the CFPB put out some FAQs at https://www.consumerfinance.gov/compliance/compliance-resources/mortgage-resources/real-estate-settlement-procedures-act/real-estate-settlement-procedures-act-faqs/#respa-section-8-marketing-services-agreements-msas to dive deeper into a few of the nuances. Entering into, performing services under, and making payments under MSAs are not, by themselves, prohibited acts under RESPA or Regulation X. In fact, MSAs are not referenced in RESPA or Regulation X. Ultimately, the determination of whether an MSA itself or the payments or conduct under an MSA is lawful depends on whether it violates the prohibitions under RESPA Section 8(a) or RESPA Section 8(b), or is permitted under RESPA Section 8(c). The analysis under RESPA Section 8 depends on the facts and circumstances, including the details of the MSA and how it is both structured and implemented. … An MSA is or can become unlawful if the facts and circumstances show that the MSA as structured, or the parties’ implementation of the MSA—in form or substance, and including as a matter of course of conduct—involves, for example:
Excerpt from Answer to Question 3 at RESPA Section 8: Marketing Services Agreements (MSAs): https://www.consumerfinance.gov/compliance/compliance-resources/mortgage-resources/real-estate-settlement-procedures-act/real-estate-settlement-procedures-act-faqs/#respa-section-8-marketing-services-agreements-msas Not a member? Learn more about membership with Compliance Alliance by attending one of our live demos: Compliance Alliance offers a comprehensive suite of compliance management solutions. To learn how to put them to work for your bank, call 888.353.3933 or email and ask for our Membership Team. For timely compliance updates, subscribe to Bankers Alliance’s email newsletters. SDBA eNews Archive Advertising Opportunity Questions/Comments |
