Saving Investment – Nelshael Sun, 02 May 2021 05:10:09 +0000 en-US hourly 1 Saving Investment – Nelshael 32 32 ESFA 2020 to 2021 year-end reconciliation for Adult Education Budget (AEB) and Advanced Student Loans Bursary (ALLB) Wed, 07 Apr 2021 23:13:56 +0000


We are lowering the reconciliation threshold for adult skills AEB funded by a grant from the Education and Skills Funding Agency (ESFA), including non-formula funded community learning and internships from 19 to 24, and ALLB providers for the academic year 2020 to 2021.

The threshold will be lowered from 97% and 100% respectively to 90% in recognition of the difficulties and uncertainties many providers face due to the impact of the Coronavirus (COVID-19).

Reconciliation process

To encourage the provision of adult skills and ensure value for money, we normally claw back any funding from providers funded by ESFA grants (for AEB Adult Skills and 19-24 internships) who provide less. 97% of their allowance. For ALLB financing, 100% of sub-deliveries are normally recovered.

Changes to the threshold from 2020 to 2021

When providers provide 90% or more of their AEB and ALLB allocations, there will be no year-end reconciliation. When suppliers deliver less than 90%, we recover the difference between their actual delivery and 90%. For example, a delivery of 85% would result in a recovery of 5% of the allowance. This change is for this year only, the reconciliation threshold will return to its normal level of 97% for the next academic year.

Your regulated and unregulated delivery and learner support are combined with your non-formula funded community learning delivery to form your final service value. This is divided by the allocation value to calculate the final delivery percentage on which the reconciliation is based.

Your benefit calculation will only include the non-formula funded community learning benefit up to the value specified in your funding agreement (if applicable).

This 90% threshold is the final position for the 2020-2021 academic year and will not be subject to change. There will be no business case process.

We will update our AEB funding rules for the 2020 to 2021 academic year in April to include this change. We are announcing this change now to help vendors better plan their offering for the remainder of the 2020-2021 academic year.

Allocations for the COVID-19 skills offering, including funding for the new adult level 3 offering, are capped and the reconciliation threshold for the under-provision of this provision will remain unchanged at 97%.

Summary of revised thresholds

Funding stream Revised threshold
AEB (adult skills including learner support and community learning) Only delivery below 90% is clawed back, for example, 85% delivery results in 5% clawback of the allowance (the only other rule to consider is that community learning over delivery will not be taken into account)
19 to 24 courses (closed) Only a delivery less than 90% is recovered, for example, a delivery of 85% results in the recovery of 5% of the allocation
COVID-19 skills offer (closed) Unchanged – any delivery above 97% and there is no recovery, but delivery below 97% will result in the recovery of all sub-deliveries
ALLB Only a delivery less than 90% is recovered, for example, a delivery of 85% results in the recovery of 5% of the allocation

Our primary goal is to help suppliers continue to provide as much quality service as possible, including above the 90% threshold, whether face-to-face where permitted, online or on-line. distance, and including through subcontracting (for AEB funding). provision only) when it complies with our subcontracting requirements. When providers successfully deliver to adults, we will identify and share best practices to help all providers.

We will look to schedule recoveries from December 2021 after the final funding request process as usual, and we will preferably recover in full in fiscal year 2021 to 2022. We will work with vendors who would be interested in requesting a plan. recovery in stages (up to 4 months). When this would cause financial difficulties, we will review cases beyond with your ESFA territorial team.

AEB funding allocations for 2021 to 2022

We will soon publish the allocations of ESFA AEB suppliers for the funding year 2021 to 2022.

Further information

We will continue to finance the delivery of up to 103% of the AEB grant allocation for providers funded by ESFA (110% for 19 to 24 internships) between 2020 and 2021.

In areas where AEB has been decentralized, the combined authorities of the mayor or the Greater London Authority are responsible for reviewing the flexibilities of providers in their areas.

If you have any questions, contact your regional ESFA team or use our online application form.

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World Retail Banking Report 2021: To create new value, banks can adopt banking as a service to integrate finance into consumers’ lifestyles Wed, 07 Apr 2021 23:13:56 +0000

The post-COVID-19 era will be defined by fierce competition, causing banks to rethink their priorities and realign investments in growth areas to meet higher customer expectations.

Retail banks are faced with the choice between aligning their offerings with customer expectations or running the risk of losing those customers altogether, say it Global Retail Banking Report 2021 (WRBR) published today by Capgemini and Efma. As the economic fallout from COVID-19 continues, the post-pandemic disruption has sparked a new era of customer-centric banking, which the report calls Banking 4.X. To be successful in Banking 4.X, banks must embrace digital transformation and implement cloud-based Bank as a Service (BaaS)[1] platform models, which use APIs[2] to integrate banking into daily life, making it more accessible and inclusive for banking customers.

Over the past 10 years, the neo-[3] and challengerbanks have attracted over 39 million customers. The report finds that currently 81% of consumers said easy access and flexible banking would motivate them to switch to a new-age financial service provider, instead of their traditional bank.

Meanwhile, many traditional banks are looking to retain and grow their customer base and have already started their journey of digitization and cost optimization as the COVID-19 pandemic has forced them to dramatically step up their efforts. Additionally, retail banking customers facing pandemic realities now expect fully digitized on-demand experiences, hyper-personalized services, and 24-hour support. However, among those surveyed, 46% of bank executives say they don’t know how to embrace an open bank, orchestrate ecosystems, and become a truly data-driven organization. These actions are essential components of the new way of doing banking, identified by Capgemini as Banking 4.X[4].

“By overcoming outdated mindsets and embracing banking as a service, financial institutions will go beyond their core banking products, create new offerings and deliver personalized experiences to their customers.” says Anirban Bose, CEO of Capgemini Financial Services and member of the Group Executive Board. “Banks need to focus on how they can add value to their customers to retain and retain them. Thanks to the platform and the exploitation of data, banks can better meet the needs of modern customers and create new sources of revenue. “

The platform defines a new era for the industry

Incumbent banks can unlock new value in open ecosystems through BaaS platforms, which provide access to new data sources and monetization opportunities. Banks must quickly turn to experience-based, platform-based approaches that integrate banking and other services into consumers’ lifestyles. On a positive note, 66% of banks say they already use a BaaS platform, while 25% are in the process of developing one.

Incumbents have several strengths in their business that they can easily monetize (e.g. reports, KYC, licensing, transaction processing, connectivity to global systems, etc.). They can also call on a range of external providers to improve their offering and best meet consumer demand for a more integrated and personalized experience. Traditional banks have recognized that accessing the capabilities of their larger ecosystem is at the heart of their new journey, and 80% of bank executives said BaaS would help them cultivate open ecosystem synergies to innovate and create new ones. banking products and services. This will allow banks to bridge the gap between their current situation and the expectations of tomorrow’s customers, which will be amplified in the era of 4.X banking. This new way of doing banking will also allow banks to become more inclusive in integrating unbanked and underbanked segments of the population through on-demand, digital and easier-to-use channels.

Banking and non-banking businesses have the opportunity to come together and provide better customer service. ” says John Berry, CEO of Efma. “These strategic partnerships enable new, creative offerings that reflect the lifestyle, needs, wants and even the personality of customers. Banks should focus on improving support, reducing the costs of banking products and services and delivering sustainability initiatives. a solid digital base and a flexible attitude to innovation. “

Data-driven approach will prioritize hyper-personalization and ensure long-term growth

As the bank enters an era where financial services are integrated into the daily lives of customers, collaboration will be the path to success. BaaS offers unprecedented opportunities to collect data across ecosystems, with over 86% of consumers saying they would share their data for a better and more personalized experience. Incumbents must develop digital capabilities to harness these data ecosystems to create, maintain and increase value in the age of 4.X banking. Big banks will keep customers at the center of their transformation journey by tracking behaviors and sentiments through intelligent data analytics.

Banks must act quickly, however. The Capgemini and Efma report found that 61% of companies do not have a dedicated Customer Experience (CX) management team to set customer roadmaps. Banks can dramatically improve their customer experience by deploying a digital CX layer and reinventing branches as experience centers, to deliver a consistent and secure omnichannel experience across all touchpoints.

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Emirates News Agency – Mohammed bin Rashid approves AED 30 billion financial support for businesses to boost economy Wed, 07 Apr 2021 23:13:56 +0000

DUBAI, April 5, 2021 (WAM) – His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, approved the strategy of the UAE Development Bank (EDB) to provide significant financial support of AED 30 billion to businesses and start-ups in a major step to boost the national economy.

Launched to support the “300 billion operation”, the EDB strategy aims to leverage the role of the Bank as a key engine of the national economy to provide the largest network of support to the industrial sector.

Sheikh Mohammed bin Rashid Al Maktoum said: “The promotion of the national economy is a top priority which requires a joint effort of all our economic entities in the coming phase.”

He added: “We need to adopt a distinctive vision that responds to global trends and supports development in order to maximize the revenues of the industrial sector and stimulate the economy as a whole.

“The UAE Development Bank’s strategy represents a giant leap forward in leveraging the bank’s role as a key driver of the national economy. Providing effective financial solutions will support the role of SMEs as key players in shaping our national economy.

The EDB strategy was launched in the presence of Lieutenant General Sheikh Saif bin Zayed Al Nahyan, Deputy Prime Minister and Minister of the Interior; HH Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs; and HH Sheikh Abdullah bin Zayed Al Nahyan, Minister of Foreign Affairs and International Cooperation, among other delegates and officials.

Sheikh Mohammed bin Rashid launched the $ 300 billion operation earlier in March as part of a comprehensive 10-year strategy to more than double the contribution of the industrial sector to the country’s GDP, positioning the UAE as a global industrial center. by 2031.

Support for the 300 billion operation Dr Sultan Al Jaber, Minister of Industry and Advanced Technologies and President of EDB, presented the pillars and objectives of the Bank’s strategy.

As part of this strategy, the Bank has allocated a portfolio of AED 30 billion to support priority industrial sectors over a period of five years, which will help finance more than 13,500 SMEs and create 25,000 jobs.

Al Jaber noted that the launch of the strategy builds on the role of the Bank as a key driver of national economic development which provides an extensive network of support to the industrial sector in line with the goals of the 2021-2031 industrial strategy.

He said: “Operation 300 billion is a comprehensive national program aimed at strengthening the contribution of the industrial sector to the sustainable economic growth of the UAE. Through close collaboration, the Ministry of Industry and Advanced Technologies and the UAE Development Bank will provide support to large companies, SMEs and entrepreneurs from various sectors including healthcare, infrastructure, food security and technology. “

Al Jaber noted that EDB will act as a key financial driver for the national industrial strategy Operation 300 billion, alongside its continued mandate to provide the Emiratis with housing finance. “The new EDB strategy will help accelerate industrial development and the adoption of advanced technologies through dedicated funding programs and will also provide dedicated investment funds that will support entrepreneurs, start-ups and SMEs.”

In addition to providing flexible housing solutions, EDB will complement its offering to businesses and entrepreneurs with training, advice and guidance for UAE citizens and residents. “EDB aims to cultivate a spirit of innovation, with a focus on industries that our leaders have identified as critical to the country’s long-term sustainable growth,” he said.

Al Jaber noted, “EDB will provide other tools, including supply chain support, project finance, long-term finance, business accelerators, equity finance and a support for business growth. “

He added that maintaining and promoting sustainable economic development in the post-COVID-19 era is a priority for UAE leaders.

“We are grateful to His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai, for endorsing the new strategy of the UAE Development Bank, which aims to boost the Entrepreneurship and innovation in the UAE’s dynamic industrial sector provide financing solutions to large companies, entrepreneurs and SMEs. “

<< Thanks to the guidance of His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the United Arab Emirates, His Highness Sheikh Mohammed bin Rashid Al Maktoum and His Highness Sheikh Mohamed bin Zayed Al Nahyan, the United Arab Emirates continues to strengthen its reputation world of progress and ingenuity as it gears up for the next 50 years. "

He added: “His Highness Sheikh Mohammed bin Rashid Al Maktoum is confident that our country will reach many important milestones over the next 50 years. And His Highness Sheikh Mohamed bin Zayed Al Nahyan stressed the need for a unified national effort, calling on the whole country to increase its efforts tenfold to ensure that the country’s ambitious goals are met. “

Al Jaber said that “ Along with the close cooperation between the ministry and the EDB, the 300 billion operation is the result of a huge collaborative effort with our stakeholders, which in turn enabled and enabled us to develop practical and integrated solutions that we can start to implement correctly. a way.”

EDB Priorities Al Jaber underlined that in the next phase, EDB will step up the financial support provided to the industrial sector. Its priorities include establishing partnerships with UAE banks to expand financial services to small and medium-sized industrial enterprises and increasing its direct funding by 73% in 2021 to support priority sectors, while also focusing on underserved areas with extensive financial solutions.

The Bank will also launch an AED 1 billion investment fund for start-ups and SMEs in 2022 and target industrial companies in priority sectors that need financing and investment.

Driving the National Economy The strategy expands the Bank’s continued role in promoting the national economy. Since its inception, the Bank has supported 550 businesses, providing AED1.8 billion in business loans to SMEs. The Bank has provided housing loans worth AED 2.4 billion, in addition to its $ 750 million 5-year senior bonds under a $ 5 billion program .

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Pandemic Is Changing Car Buying Plans, But Not All Buyers Are Discouraged Wed, 07 Apr 2021 23:13:56 +0000

RESTON, Virginia –

Nearly three in four applicants who planned to purchase a vehicle in the next six months said the pandemic had changed their plans in some way, according to a new study. The main change is that they were more focused on finding a good deal.

The new research comes from media planner Comscore, and the research also shows that the pandemic is the number one economic concern for four in ten who want to buy a new vehicle.

Other ways the pandemic changed plans for purchasing intentions for a new vehicle were that they are currently more cautious with all of their spending, they expect to research more vehicles, income uncertainty has delayed their planned purchase and they plan to purchase new vehicles rather than used ones. or certified pre-owned.

Comscore interviewed candidates – or respondents who were considering buying or leasing a new or used vehicle – to understand how COVID-19 has changed the auto shopping landscape and contributed to changes in consumer behavior.

Other information from the survey:

– Almost half of the applicants said their income was negatively affected by COVID-19.
– More people aged 18 to 34 and 34 to 54 were negatively affected than those aged 55 and over.

A third of applicants expected the pandemic and the resulting economic situation to delay their research and subsequent purchase schedule.

But not all buyers have been put off, Comscore said.

Fifty-five percent of applicants expected no schedule change due to COVID.

Twenty-seven percent said the pandemic had not changed their vehicle purchasing plans at all.

In fact, due to new offerings and customer support available for new vehicles, changes in levels of COVID-19 cases and their feeling of being less safe in more public modes of transportation, 13% of applicants expected their research timelines to shorten.

Comscore said U.S. auto buyers and sales have rebounded from their April 2020 lows. This is mainly due to actions by automakers to financially support and incentivize consumers as well as interest sustainability and flexibility for better-off consumers. The people least economically affected by the pandemic stayed in the market to buy at their convenience and take advantage of the offers.

In addition to financial support, automakers have empowered their dealer networks to embrace new, convenient and safe COVID services. Comscore said this was done to keep consumers comfortable and alleviate potential obstacles in their travels.

Several automakers have launched new “online retail experience” sites and tools that allow consumers to shop, get quotes, apply for loans, purchase and arrange delivery to. home, all from their home. Comscore called this “perhaps the most promising new offering”.

Forty-eight percent of applicants last year expressed interest in buying and purchasing a car entirely online. This is an increase of 10 points compared to 2019.

This renewed interest has resulted in a surge of traffic to the online shopping domains that various automakers have launched or expanded in response to the pandemic.

Fiat Chrysler Automobiles (now Stellantis) launched last April, before moving to e-Shop brand domains. In December, the number of unique visits to FCA’s online store area had increased by 214% since its launch.

Comscore Automotive Vice President Dennis Bulgarelli said that despite the economic impact of the pandemic, consumers remain prepared for larger purchases such as vehicles, as long as they see the right motivation.

“This means that in the short term, automakers must continue to strategize and innovate to meet the distinct needs of different types of consumers,” Bulgarelli said in a press release.

Bulgarelli also said: “Even if life begins to return to ‘normal’, consumers will have adapted new habits, preferences and expectations regarding the services available – and they are unlikely to take the revocation of the now standard amenities. Brands from all walks of life – automakers are no exception – will need to be ready and informed to continue to deliver value. “

Comscore provided an outlook for 2021, saying that although vaccinations are on the rise, it could still be several months before many consumers have a more “normal” car-buying experience.

With many consumers still keen to make larger purchases such as vehicles, automakers should in the short term continue to strategize and innovate to meet the distinct needs of different types of consumers, Comscore said.

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Done Right, Legal Pot Could Bring Social Fairness and Opportunity to Virginia Wed, 07 Apr 2021 23:13:56 +0000

Samer Abilmona, director of Green Leaf Medical in Richmond, holds a tray of marijuana cuttings. (Scott Elmquist / Style Weekly)

Virginia owes a lot to a smokable herb.

Look no further than the ceiling of the State Capitol Rotunda to see painted depictions of golden brown leaf garlands that were essential to the founding of Virginia 400 years ago.

The Virginia Company of London, incorporated, experienced a lean period in the first few years after gaining a foothold in Jamestown. Tobacco was one of his rare successes. The crop flourished in the fertile loam and sunny summers along the James River. Across the Atlantic, demand grew insatiable for what has been called ‘joviall weed’, ‘precious stench’ and ‘hell’s cut weed,’ according to ‘Virginia: The New Dominion by historian and publisher Virginius Dabney. It remained one of the primary cash crops in Virginia throughout the 20th century.

On July 1, another smokable weed, once condemned by the facility, is expected to become legal for adult recreational use. And two and a half years later, legal commercial cultivation, processing and sale of marijuana would begin in Virginia.

The final word on it comes on Wednesday when the Virginia General Assembly is expected to pass Gov. Ralph Northam’s amendments to a bill passed in the winter legislative session that finally legalized ganja in the Old. Dominion.

Ultimately, personal use and possession as well as home cultivation of a limited number of plants will be the law. As originally passed by the House and Senate, the bill would have delayed the legalization of reefers until 2024. Civil rights advocates have argued that such a delay would only prolong the period during which black Virginians are cited for possession of the ubiquitous substance at four times the rate of whites.

The governor listened to it and modified it to go back to the date of entry into force of legalization. Its revisions allow a household to grow up to four plants for their private use, but postpones commercial pot production until 2024 to give policymakers more time to put in place the regulatory infrastructure for the budding industry. .

Its recommended changes also speed up the timeline for sealing records of past pot possession offenses and allow those convicted of marijuana felons to go to court for their deportation.

“Virginia will become the 15th state to legalize marijuana – and these changes will ensure that we do so with a focus on public safety, public health and social justice,” Northam said in a statement summarizing his amendments to the project. of law.

The United States has a long, stupid history of marijuana hysteria dating back to the depression era and the release of the unintentionally hilarious 1936 B-movie “Reefer Madness. As the left counterculture embraced it in the 1960s and 1970s, state and federal authorities responded with repression still evident today.

“It was done because they couldn’t criminalize being Black or being against the Vietnam War, but they could criminalize cannabis, and that’s what they did,” said Amber Littlejohn, Lawyer and Executive Director of Association of Minority Cannabis Companies.

It has remained so, especially in communities of color. While arrest statistics imply that cannabis use was more prevalent in these communities, anyone who has ever attended a Grateful Dead or Willie Nelson concert knows this better.

Among the discoveries of a American Civil Liberties Union Report Last year, FBI data showed that U.S. police in 2018 made more arrests for marijuana violations than all violent crimes combined.

Now the legalization in Virginia – reflecting an astonishing change for the historically conservative General Assembly – appears to have a smooth path to be enacted this week when lawmakers consider Northam’s amendments. In addition to the support of Democratic majorities in the House and Senate, the governor’s amendments convinced two Republican senators, like Ned Oliver of the Mercury. reported Last week.

The legislation was born out of concerns for social equity. Not only have minorities and economically disadvantaged groups been jailed and disproportionately fined for decades, but youth jar possession arrests over otherwise harmless cases have weighed on young people vying for jobs. high level, university scholarships, security clearances and loans. Cleaning these stains from their records at least improves their chances of realizing their potential to contribute more fully to Virginia’s economy.

A less discussed benefit is the economic development potential and tax revenues the Commonwealth can derive from a robust cannabis industry.

A report last November by the General Assembly’s investigative arm, the Joint Audit and Legislative Review Committee, found that the marijuana industry could potentially create more than 18,000 jobs in Virginia.

The same report projects that the state sales tax, coupled with a 25% tax on marijuana, could, within five years of the start of commercial production and sales, generate up to $ 308 million. of income per year. A 20% tax on marijuana, according to the JLARC projects, would bring in more than $ 250 million a year.

Medical marijuana businesses are already seeing the growth potential of legal adult use in Virginia. Companies like Parallel, a global developer and distributor of cannabis products, has a head start on newcomers who want to compete in the recreational use market.

While 2024 appears to be a long wait, Virginia must act quickly to not only strengthen its regulatory authority for the cannabis industry, but also to provide opportunities for those entering the field, especially small businesses owned by. minorities and women, said Sam Schwartz, vice-president of Parallel. president of government relations.

“The most important thing right now is access to capital,” said Schwartz. “We are not allowed to have traditional banking relationships, so if you combine access to capital to be a cannabis business with the traditional challenges of accessing capital in minority communities, it is almost impossible for a minority entrepreneur to ” get the capital you need to get started. a cannabis business. “

Funding marijuana businesses is difficult because while more states legalize cannabis, it is still nominally illegal under federal law. Federally chartered banks will not make loans. Some state-chartered banks as well as venture capital and private equity firms will expand their capital, but many remain tricky, said Rebecca Gwilt, executive director of the Virginia Cannabis Industry Association and a lawyer who advises clients in the cannabis industry.

“There are very few investment banks that will play in this space because of the federal government’s stance on cannabis,” she said. “So there are… Canadian investment banks doing transactions in the United States. But there are a few, and if you don’t have access to those connections, it may be difficult for you to raise capital. “

The continued federal ban also has operational limits that prohibit operations across state borders. Richmond lobbyist Tray Adams of McGuireWoods Consulting said this creates an ineffective and confusing state-by-state patchwork of different and sometimes conflicting laws and regulatory requirements. He is pushing for Curaleaf Holdings Inc., a cannabis products company that operates 101 retail dispensaries in 23 states.

“The variety of state plans and processes really point to a potential federal resolution to the problem,” Adams said.

If what Virginia really does is about social justice, it is incumbent on state policymakers to act quickly to ensure that groups most disadvantaged by decades of harsh prohibitions share the opportunities that legalization offers, Littlejohn said. , whose organization advocates for the inclusion of the minority. entrepreneurs in the commercial marijuana industry.

Among other things, this could include state aid in the form of low or no interest start-up capital, educational resources, assistance in navigating the maze of zoning and regulatory issues as well as legal and regulatory assistance. technique for filing complex cannabis applications. business licenses – something that Littlejohn says typically exceeds $ 100,000.

“When you look at something that has targeted a group of people so directly based on race, it’s really important to try and right the wrongs of something that we keep doing wrong,” she said. .

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Senator Sherrod Brown wants to use ‘congressional review act’ to overturn Trump-era financial rules Wed, 07 Apr 2021 23:13:56 +0000

WASHINGTON, DC – Now that former President Donald Trump has been removed from office, US Senator Sherrod Brown is using his chairmanship of the US Senate committee that oversees the banking system to overturn regulations passed by the Trump administration in its dying days which he considers anti-consumer.

On Thursday, Brown joined a Democratic colleague of the US Senate Committee on Banking, Housing, and Urban Affairs, Maryland Senator Chris Van Hollen, in introducing legislation to repeal the so-called “real lender rule,” the office from Trump’s Comptroller of the Currency. finalized in the last months of administration. The pair say the Trump administration rule allows predatory lenders to bypass state laws that lower interest rates on loans and allow them to prey on vulnerable consumers.

Brown too introduced a resolution to quash the proceedings the Securities and Exchange Commission finalized at the end of last year that affect how shareholders can present proposals at company meetings. Under the Brown settlement fights, shareholders who present resolutions at company meetings must hold a larger share of the company’s shares for a longer period than was previously necessary.

Brown uses a 1996 law called “Congress Review ActFor both efforts. It allows a new Congress to repeal federal agency rules that were passed in the last 60 working days of the previous Congress. According to the Congressional Research Service, it was used to overturn 17 rules. Sixteen of them were Obama administration rules that Republicans who controlled Congress and the White House in 2017 rescinded after Trump took office. The rules that Republicans overturned included a flow protection measure and Bureau of Consumer Financial Protection rules on auto loans and arbitration.

The measures of the Congressional Review Act must be passed by both houses of Congress by a simple majority. After that, the president has to sign them. Since presidents are unlikely to sign resolutions that overturn rules issued by their own administrations, the process is more likely to be used after elections where the outgoing or outgoing party loses and both houses of Congress are aligned with the incoming chair.

Other US senators are trying to use the procedure to reverse Trump administration rules set by the Equal Employment Opportunity Commission that critics say it is more difficult for workers to get justice if they have been discriminated against on the job, and to stop a rule which limits the ability of the Environmental Protection Agency to regulate methane, a greenhouse gas which environmental groups say contributes to climate change.

Brown’s office says April 2 is the deadline to bring the Congressional Review Act efforts into the current Congress and must pass within the 60-day Senate session of February 2. He hopes his measures will be voted on before June.

Brown says the SEC rule he wants to overturn makes it harder for small shareholders to submit proposals for consideration by all shareholders at company annual meetings, and resubmit them repeatedly to raise awareness of the issues. problems and get companies to adopt them eventually.

“These rules were yet another ploy by the Trump administration to undermine shareholder democracy,” a statement from Brown said. “Changes to the SEC’s shareholder proposal rule last year made it much more difficult for working families and investors to hold company management accountable. By increasing the eligibility and resubmission thresholds for shareholder proposals, the rules remove an important tool for promoting better corporate governance, increasing transparency and reducing the gender pay gap. Congress needs to repeal the rule and we need to find ways to increase shareholder participation and make executives more accountable. “

Brown says the “real lender rule” he wants to overturn “guts out state consumer protection laws and allows unregulated payday loans across the country.”

“For years under the Democratic and Republican administrations, federal regulators cracked down on abusive ‘bank hire’ systems in which payday lenders funnel their predatory high-interest loans through national banks to escape credit limits. state interest rates, ”said a separate Brown statement. “The OCC rule is a complete reversal of that policy, a betrayal of hard-working American families and a shameful attack on the ability of states to protect their citizens from predatory loans.

According to Reuters, FinTech firms had researched the “real lender rule” for legal certainty as to whether state or federal rules applied when partnering with traditional lenders to issue loans. Democrats say the rule is in fact designed to allow those companies to evade state usury laws and rate caps by partnering with banks subject to more flexible federal lending rules.

They say states and the District of Columbia have rules in place to protect consumers from abusive lending rates, but state chartered, federally insured banks are exempt through the Federal Deposit Insurance Act. The OCC rule allows non-banks to use banking partnerships to circumvent state laws and enforce outrageous annual percentage rates that have reached 179%, they say. They describe the agreements as “bank leasing systems”, in which the bank attaches its name to the transaction while the customer deals entirely with the non-bank lender, who markets, underwrites, arranges and collects the loan payments.

Republicans in Congress argued that the change has helped American consumers and businesses.

A 2020 letter in support of the measure signed by Republicans on the House Financial Services Committee, including Anthony Gonzalez of Rocky River and Warren Davidson of Miami County, said the rule would resolve lawsuits against non-bank fintech companies that partner with banks to provide consumer loans. The plaintiffs asserted that the FinTech companies were not “true lenders” or that they were engaged in a “lease-to-hire” program, and “therefore, the interest rate cap of the Home state of the borrower, rather than that of the responsible sponsor. bank, should apply, ”their letter said.

“The uncertainty surrounding this issue arising from the ongoing litigation casts doubt on loans made under the bank-fintech partnership model and could reduce the availability of credit in affected areas,” the GOP letter continued. “Loans to third parties are subject to the same supervisory control as a bank loan when there is a bank-fintech relationship. Since these cases point to a lack of third-party supervision by the banks in question, we believe that the OCC and the Federal Deposit Insurance Corporation (FDIC) have the necessary legal obligation and authority to promulgate rules to clarify which entity is the “true lender”. “. “

Consumer organizations have hailed Brown’s efforts to overturn a rule that allows predatory lending.

“Congress must reverse this rule to protect the hard-fought consumer protections that protect Americans’ paperbacks and peace of mind,” said a statement from Kalitha Williams, project director of Policy Matters Ohio, an institute of research on nonprofit and nonpartisan leftist state policies. offices in Cleveland and Columbus.

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Daily Financial Regulation Update – Tuesday March 30, 2021 Wed, 07 Apr 2021 23:13:56 +0000

PH customer alerts

Click here to learn more about our Coronavirus series.

Administrative changes

Appointments / Confirmation hearings

Treasury Department – Janet Yellen (effective January 26, 2021)

Consumer Financial Protection Bureau – Rohit Chopra (nominated)

Security and Trade Commission – Gary Gensler (nominated)

Small Business Administration – Isabel Guzman (effective March 16, 2021)

Commodity Futures Trade Commission

National Administration of Credit Unions – Todd M. Harper

Department of Housing and Urban Development – Marcia Fudge (effective March 10, 2021)

Department of Education – Dr Miguel Cardona (effective March 2, 2011)


Click here to consult the full text of the law relating to aid, relief and economic security against the coronavirus (the “CARES law”), Adopted March 27, 2020.

Click here to view the full text of the Paycheck Protection Program Increase Act, 2020, Adopted April 24, 2020.

Click here to view the full text of the Paycheck Protection Program Flexibility Act, 2020, Adopted June 5, 2020.

Click here to display the full text of the Consolidated Appropriation Law of 2021, Adopted December 27, 2020.

Click here to read the full text of the 2021 US rescue plan, Adopted March 11, 2021.

Click here to see a current list of bills the Senate Banking, Housing and Urban Affairs Committee, the Senate Small Business and Entrepreneurship Committee, the House Committee on Financial Services and the House Committee on Small Business.

US senate

Banking, Housing and Urban Affairs Commission

President Brown: Moratorium on CDC eviction is ‘essential’

March 29, 2021

Senator Sherrod Brown (D-OH), chairman of the US Senate Committee on Banking, Housing, and Urban Affairs, issued a statement after Centers for Disease Control and Prevention (CDC) Director Walensky announced an extension of the moratorium on CDC evictions through June 30, 2021.

Federal agencies

US Department of the Treasury

Joint statement on the joint US-EU forum on financial regulation

March 29, 2021

The Treasury Department issued a statement saying that the United States and European Union (EU) participants in the Joint United States-EU Financial Regulation Forum met on March 24 and 25, 2021 to redeem points views on matters of mutual interest as part of their dialogue on financial regulation. The meetings focused on six themes: (i) next steps in COVID-19 recovery and financial stability risk mitigation, (ii) sustainable finance, (iii) multilateral and bilateral engagement in banking and insurance, (iv) cooperation in financial market regulation and supervision, (v) developments in financial innovation regulation and supervision, and (vi) the fight against money laundering money and the fight against terrorist financing.

Federal Reserve Board

Agencies seek a wide range of views on the use of artificial intelligence by financial institutions

March 29, 2021

The Federal Reserve Board of Governors, the Office of Consumer Financial Protection, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency issued a joint statement saying they were collecting information on the use of artificial intelligence by financial institutions. (HAVE). Agencies seek information from the public on how financial institutions are using AI in their businesses, including fraud prevention, personalization of customer service, credit underwriting, and other operations.

Speech: Treasury-Federal Reserve Cooperation and the Importance of Central Bank Independence

March 29, 2021

Christopher J. Waller, newly appointed Governor to the Federal Reserve Board of Governors, delivered a speech at the Peterson Institute for International Economics in Washington, DC, titled “The Cooperation Between the Treasury and the Federal Reserve and the Importance of independence of the central bank. “

Suspension of review procedures for Regulation D

March 29, 2021

The Federal Reserve Board of Governors has announced that it is joining other financial regulatory agencies in suspending the use by its consumer compliance examiners of Regulation D review procedures in light of the Interim Final Rule of last year amending Regulation D to remove the six per month limit on practical transfers from the definition of “savings deposit”.

Federal Reserve Bank of New York

Who pays what first? Debt prioritization during the COVID pandemic

March 29, 2021

The Federal Reserve Bank of New York’s Liberty Street Economy blog posted an article titled “Who Pays What First?” Debt prioritization during the COVID pandemic. The authors examine how consumers’ reimbursement priorities have evolved since the Great Recession.

Federal Reserve Bank of Boston

New report: Main Street loan program dramatically increased the supply of credit available to small and medium borrowers

March 29, 2021

The Main Street Loan Program (program) was aimed at fostering the flow of credit to small and medium-sized businesses and non-profit organizations so that they can continue to operate during the COVID-19 outbreak. According to a new report from the Federal Reserve Bank of Boston and the Board of Governors of the Federal Reserve System, the program has served its purpose, especially with regard to small businesses, even though the program only used a small fraction – $ 17.5 billion – of its ability to facilitate $ 600 billion in loans.

US Securities and Exchange Commission

Compliance issues related to monitoring and reporting suspicious activity at broker-dealers

March 29, 2021

The Securities and Exchange Commission issued an announcement titled “Compliance Issues with Monitoring and Reporting Suspicious Activity by Broker-Dealers.” The Examinations Division (EXAMS) conducts reviews of brokers and mutual funds regarding their compliance with anti-money laundering (AML) requirements. By sharing its observations on these broker-dealer reviews, EXAMS seeks to remind companies of their obligations under AML rules and regulations and to help broker-dealers review and improve their AML programs, in particular their oversight and their reporting of suspicious activity. law enforcement authorities and financial regulators.

Consumer Financial Protection Bureau

CFPB Acting Director Uejio and FTC Acting President Slaughter issue joint statement on preventing illegal evictions

March 29, 2021

Office of Consumer Financial Protection Acting Director Dave Uejio and Federal Trade Commission Acting Chairman Rebecca Slaughter released a joint statement regarding their agencies’ work to help end illegal evictions and to protect U.S. consumers facing economic hardship as a result of COVID-19.


FINRA Investor outlook: Invest in a SPAC

March 29, 2021

The Financial Sector Regulatory Authority has published a Investor outlook titled “Investing in a SPAC,” which provides information on the basics of investing in a Special Purpose Acquisition Company or SPAC.

US Department of Education

Department of Education Announces Relief for Student Loan Borrowers with Total and Permanent Disabilities During COVID-19 Emergency

March 29, 2021

The Department of Education has announced relief for certain borrowers who have received a student loan discharge due to total and permanent disability. The changes will ensure that no borrower is at risk of having their loans reinstated, meaning they would have to repay their debt for failing to provide income information during the COVID-19 emergency.


bank of england

Bank of England Policy on Operational Resilience of MFIs

March 29, 2021

The Bank of England issued a statement discussing its Operational Resilience Policy and the documents it has issued with the aim of putting in place a stronger regulatory framework to promote the operational resilience of businesses and infrastructure companies. financial markets.

FCA and Bank of England encourage market participants to switch to SONIA in the pound sterling non-linear derivatives market from May 11, 2021

March 29, 2021

The Bank of England and the Financial Conduct Authority have issued a statement encouraging liquidity providers in the pound sterling non-linear derivatives market to adopt new listing conventions for broker-to-broker transactions based on SONIA instead of LIBOR from of May 11, 2021.

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Mills government hopes to turn the tide and adopt federal tax treatment of P3 loans Wed, 07 Apr 2021 23:13:56 +0000

AUGUSTA – Governor Janet Mills announced on Wednesday that she has asked her departments to explore whether federal funding could exist to help Maine provide the same beneficial tax treatment to P3 funds that the federal government has, according to a statement from hurry.

“I am proud of the hundreds of small businesses across the state who have used P3 funds to keep people employed, to keep their doors open and to keep our economy afloat during a time of extraordinary financial distress,” Governor Mills said.

“The federal government recognized the value of its efforts when, at the end of December, it said it would offer a double taxation benefit on products spent appropriately. Unfortunately, at the time, it also did not offer compensation to states for the loss of these tax revenues.

“My approach as governor has always been to solve problems. The proposal we have presented is a starting point and there is still work to be done. Now, with the Biden administration in place, I’m asking my departments to take a fresh look at the possibility of finding newly available federal funds that would allow Maine to keep our budget balanced and embrace the same additional benefit that was offered. by the federal government. to the many entities that have received PPP.

“I want to work with the Legislative Assembly and others to do all we can to find solutions that will help small businesses through this time of extraordinary difficulty.

The Mills administration proposed to maintain the standard P3 treatment so that no business in Maine owes state taxes on funds spent to keep employees on payroll or on other deductible expenses such as rent or utilities, the release said.

The Mills administration would prefer, the statement said, to comply with the federal government’s dual benefit of treating these P3 funds as tax-free and allowing related expenses as deductions, but, at an estimated cost of $ 100 million, was not able to do so. and always balance the budget, especially without additional federal aid to states like the one Congress recently rejected.

The governor called on her departments to immediately and quickly undertake a review to determine if there is any newly available federal funds that could be leveraged to help business results and preserve a carefully balanced budget.

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New York legalizes the use of cannabis by adults | Bressler, Amery and Ross, PC Wed, 07 Apr 2021 23:13:56 +0000

After years of unsuccessful attempts, on March 31, 2021, Governor Cuomo enacted the Marijuana Regulation and Taxation Act (“MRTA”) legalizing the use of cannabis by adults for adults over 21 years of age. . offices encompassing multiple license levels, automatic deletions, home growth and social equity provisions. Here are some of the strengths of the MRTA:

Regulatory framework: Establishes a Cannabis Management Board with a council of 5 members, of which 3 are to be appointed by the Governor and 1 by each legislative chamber, with the President subject to confirmation by the Senate. The MRTA also establishes a Cannabis Advisory Council to make recommendations to the Cannabis Control Board, Bureau and Legislature on Cannabis and Hemp, Cultivation, Processing, Distribution, Transportation, Fairness social and economic issues in the cannabis and hemp industries, criminal justice, public health and safety concerns, law enforcement regarding cannabis and cannabis products, and the testing and sale of cannabis. cannabis and cannabis products.

Taxes: Sets a 9% sales tax on cannabis, plus an additional 4% tax split between county and city / town / village, plus an additional tax based on THC content as follows: 0.5 cent per milligram for the flower, 0.8 cents per milligram for concentrated cannabis and 3 cents per milligram for edibles.

Types of license. The MRTA is considering the following types of licenses: cultivation, processing, cooperative, distributor, retail, delivery, on-site consumption and nursery licenses.

Community reinvestment: The MRTA devotes a portion of cannabis tax revenues to reinvestment in communities disproportionately affected by the war on drugs, with 40% in schools and public education, and 20% in treatment, prevention and prevention. drug addiction education. In addition, the MRTA is considering equity programs in the form of loans, grants and incubation programs to ensure broad opportunities for participation in the new legal industry by people from disproportionately affected communities as well as by small farmers. The MRTA has set a target of 50% of the licenses granted to applicants for capital. A main equity office is also provided to oversee the development and implementation of the social and economic equity plan, and ensure that the Cannabis Control Board and Cannabis Management Office continually comply. in terms of social and economic equity.

Home culture: The law will allow individuals to plant, cultivate, harvest, dry, process or possess a maximum of 3 mature cannabis plants and 3 immature cannabis plants at any one time, subject to regulation by the Office of Cannabis Management. In addition, the MRTA provides that no more than six mature and six immature cannabis plants may be grown, harvested, dried or possessed in a private residence or on the grounds of a person’s private residence.

Home possession: The law allows a person to legally possess up to 5 pounds of cannabis in their private residence or by virtue of that person’s private residence.

Previous penalties: Elimination of penalties for possession of less than three ounces of cannabis. Automatic deletion of the files of people who have already been convicted of activities which are no longer criminalized.

Current operators: Allows current registered organizations limited access to the adult use market in exchange for license fees that will help fund equity programs. The legislation prohibits vertical integration for all other licensees, except micro-enterprises, in order to prevent the retail sector from being controlled by larger cannabis producers, and establishes a objective of 50% of licenses granted to capital applicants.

Before sales of adult cannabis can take place, the state will need to put in place regulatory mechanisms and rules for production and allow retailers to sell it. Companies can take advantage of this time to bring their production into compliance. Bressler lawyers have extensive experience assisting cannabis companies in the areas of regulation and legal compliance. We look forward to working with New York clients on this historic change. For more information or assistance, please contact us.

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Share of US consumer debt during the pandemic Wed, 07 Apr 2021 23:13:56 +0000

Americans are now more in debt than at any time in history, including before the great financial crisis of 2008. This debt burden is approximately $ 14.56 trillion. and includes all types of total secured and unsecured consumer loans using the latest data available for the full year of 2020.

Key points to remember

  • Americans had more debt in 2020 than at any time in history.
  • Mortgage debt increased dramatically during the pandemic and is by far the most important type of debt for all adult age groups, with the average mortgage loan exceeding $ 208,000.
  • Credit card debt has declined due to lower travel and entertainment spending.
  • Student loan balances have increased in all age groups except those under 30.

Across generations, the lion’s share of those debt obligations is disproportionately made up of mortgages, which averaged just over $ 208,000. in 2020. But this is actually potentially positive news: Mortgage debt is generally considered “good debt” since mortgages are tax-efficient, generally have low interest rates (especially during past year with historically low rates), contribute to long-term building equity, and help achieve the American dream of homeownership.

Types of consumer debt studied:

  • Automatic loan
  • Credit card
  • Mortgage
  • Home equity line of credit
  • Student loan

The size of mortgage debt – which is typically a large multiple of the second largest type of consumer debt – may mask more nuanced developments in credit behavior during the pandemic. Some types of loans have increased and others have decreased, revealing unexpected trends.

After mortgage debt, student loans have become the second most popular type of consumer credit in America over the past decade. In 2020, they amounted to a total of $ 1.56 trillion or an average of over $ 39,000. The highest concentrations of student debt are found in the 18 to 29 and 30 to 39 age cohorts, although this debt burden unfortunately persists later in the lives of many Americans.

Auto loans – which totaled $ 1.4 trillion in 2020 – tracking $ 818.41 billion in credit card loans, also include significant levels of the debt burden, especially in the years between 40 and 59.

Net of the increase in mortgage debt, as noted in the Federal Reserve’s latest report G.19, consumer credit increased only marginally in 2020 to $ 4.184 trillion, from $ 4.181 trillion in 2019. Consumer credit, as tracked by the Fed, is made up of turning loans (such as general purpose and private label credit cards), Credit lines and fixed-term loans to individuals. A 3.9% increase in non-revolving loans like those given to students, cars and payday advances was more than offset by an 11.2% decrease in revolving credit card balances.

What debts have gone up, what debts have gone down

Data from the Federal Reserve reveals unexpected trends in how the pandemic affected U.S. debt in 2020.

Mortgage debt has increased for all ages, especially those under 30

While Americans in the middle of the age continuum (40 to 59) have the most absolute mortgage debt, the youngest generational cohort has seen the largest increase in mortgage borrowing in the past year. . This surge in first-time shopping and overall housing was driven by historically low mortgage rates, coupled with the tailwind that the economic stimulus provided in 2020 to those lucky enough to remain employed during the pandemic. COVID-19. Although unemployment disproportionately impacted this youngest group during the pandemic, many of those who were spared and had stable incomes felt the time had come to enter the housing market. Of note, mortgage debt has increased in all age cohorts, even among those 70 and older, reaching a combined level of $ 10.04 trillion. in 2020, up from $ 9.6 trillion in 2019.

Youngest cohort with less student debt

Student loan balances have also increased in all areas, with the notable exception of those under 30. This younger group likely applied stimulus payments to reduce these obligations and also benefited from the temporary suspension of student loan payments and interest due to the CARES Act. The decline in student loans may also reflect the impact of the pandemic on college enrollments, with fewer new freshmen entering the college ranks choosing to take a gap year.

New vehicle loans increased with less commuting

Loans for new and used cars have increased across all age cohorts, despite significantly fewer Americans having to visit an in-person office during the pandemic in 2020, at least for the past three quarters of the year. While not taxing like mortgages and home equity lines of credit, auto loans for new cars were at least relatively low in terms of the interest rates charged. The average rate for 48- and 60-month new car loans was 4.95% and 4.80 percent, respectively at the end of 2020.

Home equity lines of credit have seen a huge drop

Despite relatively low interest rates, home equity loans saw the largest percentage decline across all age groups in 2020, likely due to the desire to postpone many of the typical uses of these loans, such as the renovation and repair of houses, during the pandemic. While HELOC loans can also be used to consolidate debt or pay off student loans, the pandemic appears to have had a chilling effect on the use of this type of credit.

Credit card balances incurred with less travel and dining expenses

Unlike mortgage debt and student loans, credit card balances have actually declined across all age groups and by double-digit percentages as a whole. This was likely due to a significant decrease in spending on business and air travel, commuting and entertainment over the past year and the related freed up discretionary income used to pay off outstanding balances.


The growth in consumer debt over the past year has fortunately been largely due to a relatively good increase in (mortgage) debt which has positive tax and social benefits in the form of home ownership. property. The enormous level of student debt remains a major concern for our entire society, not only in terms of the burden on those with student loans, but because of the hidden displacement of vital economic activity that servicing this debt entails. . The pandemic has cut spending on credit cards and revolving balances, which has been good for Americans’ personal budgets but not for the economy in general. Spending on travel, entertainment and retail is expected to rebound in the second half of 2021, once the majority of Americans get vaccinated against COVID-19. It remains to be seen whether the rising tide of an awakened US economy will lift all boats or lead to higher inflation and a return to reliance on high interest revolving debt.


This study is based on the analysis of the latest information on consumer debt levels by product and age group for mortgages, home equity lines of credit, credit cards, student loans and auto loans from from the Center for Microeconomic at the Federal Reserve Bank of New York. Q4 2020 Data Household Debt and Credit Report.

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