Credit Agreement Implications of Supreme Court Tariff Decision

Orrick, Herrington & Sutcliffe LLP analyzes credit agreement implications following the Supreme Court's February 20, 2026 ruling invalidating IEEPA tariffs. The analysis addresses accounting treatment of potential refunds under FASB ASC 410-30 and ASC 450, and covers impacts on interest margins, financial covenants, incurrence tests, and extraordinary receipts provisions. Borrowers with existing credit facilities should evaluate these developments with their accountants and lenders.

When Participant Growth Becomes a Fiduciary Prompt — Not a Punchline

The Rosenbaum Law Firm published an analysis warning retirement plan sponsors that participant growth metrics do not equate to fiduciary compliance. The article uses Empower's reported addition of 500,000 net new retirement plan participants as context to highlight that larger participant populations increase operational complexity, testing nuances, and probability of service breakdowns.

Washington enacts Uniform Consumer Debt Default Judgments Act

Washington State has enacted the Uniform Consumer Debt Default Judgments Act, expanding consumer protections in debt collection lawsuits by imposing new complaint and disclosure requirements on plaintiffs seeking default judgments. The law, which applies to all holders of purchased debt and their affiliates, requires detailed account information, venue and statute of limitations compliance allegations, and documentation proving the debt. The law takes effect January 1, 2027.

OCC March 2026 Enforcement Actions Summary

The OCC released its March 2026 enforcement actions, including one prohibition order against a former bank employee. The agency also terminated one consent order and three formal agreements with banks, citing full compliance with requirements, outdated provisions, or incorporation into new actions as reasons for termination.

FCA proposes flexible suitability reviews, replaces annual requirement

The FCA published Consultation Paper CP26/10 on March 25, 2026, proposing to replace the current mandatory annual suitability review requirement for ongoing investment advice with a more flexible periodic review obligation. Under the proposed changes, firms providing investment advice to retail customers would determine review frequency based on client needs, risk profiles, and investment complexity, consistent with Consumer Duty obligations. Comments on the consultation close June 17, 2026.

FDIC February Enforcement Actions - Consent Orders and Waiver Terminations

The FDIC published its February 2026 enforcement actions list on March 27, consisting of nine total actions: one consent order, one order of prohibition, six orders terminating 100 waiver orders, and one notice. The FDIC noted that no administrative hearings were scheduled for April 2026.

California DFAL requires digital asset firms to obtain DFPI license by July 2026

California's Department of Financial Protection and Innovation (DFPI) requires digital asset businesses serving California residents to obtain a DFPI license by July 1, 2026 under the Digital Financial Asset Law (DFAL). Affected entities include exchanges, custodians, wallet providers, digital asset issuers, and crypto kiosk operators. Applicants must submit audited financial statements, maintain a minimum $500,000 surety bond, implement AML/BSA and KYC programs, align cybersecurity to NIST CSF 2.0, and provide customer disclosures.

DOL Proposed Fiduciary Framework for 401(k) Investment Selection

The Department of Labor published proposed regulations on March 31, 2026, establishing a new framework and process-based safe harbor for fiduciaries selecting designated investment alternatives in 401(k) plans. The proposal addresses six factors (Performance, Fees, Liquidity, Valuation, Performance Benchmark, Complexity) and aims to reduce litigation risk for plan fiduciaries. Public comments are due by June 1, 2026.

SEC Extends Trading Relief to Share Class ETFs

The SEC issued its fourth approval extending trading relief to share class ETFs, enabling these newly authorized ETF structures to begin listing and trading. The relief extends the broker-dealer exemptive provisions under Rule 6c-11 to share class ETFs, resolving a gap where brokers could not rely on existing relief for these instruments.

Financial Regulators' Adaptation to Fintech, AI, and Stablecoins

The House Financial Services Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence held a hearing examining how federal financial regulators are adapting to new technologies. Officials from the Fed, FDIC, OCC, and NCUA testified on their strategies for fostering innovation in AI, digital assets, and bank-fintech partnerships. The hearing also covered implementation of the GENIUS Act for payment stablecoins and the draft Financial Services Innovation Act of 2026.