October 11, 2026 to October 17, 2026

This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions and other government-related news for professionals in the financial industry, banking, credit unions, insurance, payment processing, fintech, credit card issuing, asset management, venture capital, private equity, and crypto-currencies. Once a week, we break down the most important updates in this space in under five minutes.

Want to track other GR news in adjacent industries? Don’t miss this week’s updates in ICT & Cybersecurity. Also consider subscribing to our Finance - Ottawa edition covering critical GR news north of the border.

📋 In This Week's Newsletter

• 🇺🇸 Federal Government News
• 📚 What We're Reading This Week

Federal Government News

SEC Proposes Amendments to Rule 17a-7 on Investment Company Cross Trading

The SEC has put forward amendments to rule 17a-7 under the Investment Company Act, aiming to modernize and expand the scope of cross-trading for registered funds and specific affiliates. The proposal would permit cross trades for securities with readily available market quotations or those valued using observable inputs, while prohibiting them for level 3 securities. Pricing alternatives include NAV pricing or current market pricing, with reviews by unaffiliated sources. Advisors are required to determine that each cross trade serves the fund's best interest. Oversight functions shift from boards to the fund's chief compliance officer, who must conduct quarterly and annual reviews and report to the board. Comprehensive recordkeeping for cross trades would be required for six years, and registered funds must report aggregate activity on Forms N-PORT and N-MFP. The SEC estimates transaction-cost savings and seeks public comment on the economic impact and compliance burden before implementation.

Sources: www.federalregister.gov

NCUA Board Proposes Changes to Fidelity Bond and Insurance Coverage for Federally Insured Credit Unions

The National Credit Union Administration proposes amendments to regulations covering fidelity bond and insurance for federally insured credit unions. The changes are designed to reduce regulatory complexity and administrative costs while maintaining safety standards. Proposed modifications include allowing boards to delegate review of bond applications and renewals to designated members, removing rotating signatory requirements, and eliminating the 10-year expiration period for approved forms. Simplifications cover minimum coverage determinations and remove advisory provisions linking coverage to cash-on-hand levels. The amendments would align the rules with current practices, offering increased flexibility and compliance efficiency. Public comments are open until December 14, 2026.

Sources: www.federalregister.gov

PBGC Proposes Modifications to Annual Statement of Compliance for Special Financial Assistance Recipients

The Pension Benefit Guaranty Corporation is seeking comment on proposed modifications to its Annual Statement of Compliance (ASOC) for multiemployer plans receiving special financial assistance. The draft changes would require documentation of investment policies and minutes from trustee meetings discussing investment services, as well as reports referenced therein. Plans must also submit data on missing participants and documentation for procedures used to locate them. If such documents do not exist, the plan must acknowledge that fact with a statement. The PBGC estimates a resulting increase in both time and compliance costs per plan sponsor. Public comment is invited through December 15, 2026.

Sources: www.federalregister.gov

SEC Requests Extension for Money Market Fund Monthly Portfolio Reporting

The SEC submitted a request to OMB to extend information collection requirements for Rule 30b1-7 and Form N-MFP, which mandates registered investment companies acting as money market funds file monthly electronic portfolio reports in XML via EDGAR. Compliance is obligatory for funds relying on Rule 2a-7. According to the SEC, 318 money market funds file Form N-MFP, resulting in an annual burden of 41,976 hours and $2,953,584 in total costs. Internal reporting costs are calculated at $459 per hour, while external costs are $774 per filing. Compared to previous estimates, the number of responses declined, time burden dropped by over 4,000 hours, and cost burden increased by $72,156. Comments are due by November 16, 2026.

Sources: www.federalregister.gov

President Signs Three Bills Including Update to ERISA for Retirement Plans

On October 15, 2026, the President signed S. 240 (Crow Tribe Water Rights Settlement Amendments Act), S. 283 (Illegal Red Snapper and Tuna Enforcement Act), and S. 2403 (Retire through Ownership Act) into law. S. 2403 updates the Employee Retirement Income Security Act of 1974, establishing new definitions of adequate consideration for certain closely held stock transactions within retirement plans. The new law modifies ERISA's regulatory language to address ownership and valuation issues. The other bills focus on water rights and seafood origin enforcement.

Sources: www.whitehouse.gov

What We're Reading This Week

• The Morning Risk Report: Bank of America to Pay $1.2 Billion to Settle Violations of Money Laundering, Sanctions Laws: Bank of America agreed to settle federal money laundering and sanctions violations for $1.2 billion.
• Bank of America Fined $1.2 Billion for Lax Money-Laundering Oversight: The US fined Bank of America $1.2 billion for failures in monitoring suspicious transactions.
• Bank of America fined $1.2 billion by US government for failing to police suspicious activity: BofA faced a record penalty over deficient anti-money laundering controls.
• BofA misses profit estimates on trading weakness, books $1.2 billion charge: BofA posted lower earnings, citing the enforcement penalty as a key charge.
• As Wall Street banks finance and adopt AI, risks mount on both fronts: Wall Street firms face rising risks with AI adoption and financing technologies.
• Private credit roundup: CoreWeave's debt stress tests private credit's AI financing boom: CoreWeave’s debt profile challenges private credit markets in ongoing AI expansion.
• US hits Bank of America with $1.2 billion fine, saying it violated money laundering, sanctions laws: US government issued a penalty for BofA’s lapses in anti-money laundering practices.
• Why Bad News in the Bond Market May Be Good News for Investors: Recent bond market volatility presents possible advantages for certain investors.
• The Morning Risk Report: Debanking Probe Finds JPMorgan, Banks Cut Off MAGA Sellers and Democrat Groups: JPMorgan and other institutions terminated accounts for political groups as part of ongoing risk reviews.
• India's top court voids Yes Bank's $880 million AT-1 bond write-off: Yes Bank’s 2020 AT-1 bond write-off was ruled illegal by India's Supreme Court, affecting bondholders.

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