An FDIC request for feedback on improving an agency rule that mandates certain insured depository institutions ("IDIs") to submit resolution plans (the "Plan Rule") was published in the Federal Register. Comments must be submitted by June 21, 2019. As previously covered, the Plan Rule requires an IDI with over $50 billion in total assets to submit a resolution plan that allows the FDIC to resolve the IDI in the event of its insolvency. Specifically, the FDIC seeks comments on certain approaches under consideration, including: the creation of "tiered resolution" planning requirements contingent

The SEC approved a proposal to amend FINRA Rule 4570. The rule requires a broker-dealer that withdraws from SEC registration to designate a person to act as custodian of the firm's books and records. The amendments will become effective on August 19, 2019. As previously covered, FINRA proposed to amend Rule 4570 to: give the withdrawing firm the option to designate another FINRA member broker-dealer ( e.g., an introducing firm's clearing broker) to act as custodian of its books and records after the firm withdraws from registration; and clarify the responsibilities of the books and records

The MSRB proposed to eliminate MSRB Rule G-29. The rule requires that an up-to-date copy of the MSRB rules be kept in each office where municipal securities dealer activities are performed. As part of its retrospective rule review, the MSRB stated that, "in light of the widespread availability of the MSRB Rulebook online," Rule G-29 is not necessary to ensure customers and municipal securities professionals have access to MSRB rules. In addition, the MSRB noted that the proposal contributes to continuing efforts to enhance market efficiency by removing unneeded regulatory requirements. The

FINRA consolidated criteria for designation of participants in FINRA's Business Continuity/Disaster Recovery Testing ("BC/DR Testing") under Regulation Systems Compliance and Integrity (Regulation SCI). FINRA Rule 4380 authorizes FINRA to designate firms that must participate in annual BC/DR Testing based on standards, which FINRA provided in two previous Regulatory Notices (see here and here). FINRA made no substantive changes. FINRA stated that it will notify firms that meet such criteria in April of each year.

A Silicon Valley-based marketplace lender agreed to settle SEC charges for having "miscalculated and materially overstated" annualized net returns to investors. Prosper Funding LLC ("Prosper") is a marketplace lender that (i) provides unsecured consumer loans to borrowers and (ii) issues securities that include notes connected to the performance of the consumer loans ("Prosper Securities"). According to the SEC Order, Prosper excluded from its return performance to investors on certain Prosper Securities connected to certain "charged-off consumer loans" that had been resold in the secondary