COVID-19 Updates 5/11

Senate Banking Committee Oversight Hearing

In advance of tomorrow’s Senate Banking Committee oversight hearing with federal prudential regulators, the Federal Reserve released a report detailing steps the Board has taken to address the economic and financial challenges of the COVID-19 pandemic, as well as the written testimony of Fed Vice Chair for Supervision Randy Quarles.  The report and testimony focus largely on the banking system with no explicit reference to the non-bank financial sector. The hearing will also include the heads of the FDIC, OCC, and NCUA.   

On Wednesday, the House Financial Services Committee’s Subcommittee on Consumer Protections and Financial Institutions plans to hold a video conference briefing with the same four witnesses.  

Regulatory Relief  

In response to the challenges of reporting EU cross-border taxation created by the COVID-19 crisis, the European Commission is proposing to defer certain deadlines for filing and exchanging information under the Directive on Administrative Cooperation (DAC6), which requires reporting of cross-border arrangements that have characteristics of aggressive tax planning. The proposed amendment, available at the following link and which is still subject to approval by the EU member states, would provide a three-month deferral of reporting deadlines, including the initial reporting deadline of July 1, 2020.