Financial

By Alan Wolper on September 20, 2019

I have written a few times about FINRA’s ceaseless interest in bringing cases against registered reps who fail to update their Form U-4 in a timely manner to disclose the fact that a tax lien has been filed against them. Or several tax liens. The problem with these cases is not so much the sanctions that FINRA imposes, as they tend to be fairly modest, e.g., a fine of $5,000 or less plus a suspension,…

Financial Services Perspectives

Lessons from the CFPB’s First Remittance Transfer Rule Consent Order

By Lee Gilley & Dana C. Lumsden on September 20, 2019

In 2010, Congress amended the Electronic Funds Transfer Act (EFTA) by creating “a comprehensive system of consumer protections for money sent by U.S. consumers to individuals and businesses in foreign countries.” In 2013, the CFPB issued the Remittance Transfer Rule to implement the EFTA’s new requirements and updated its EFTA exam procedures to incorporate the new rule. While the CFPB identified potential Remittance Rule Violations in several supervisory highlights (see Winter 2016 Supervisory Highlights,…

Mortgage Crisis & Financial Services Watch

Eleventh Circuit Holds that a Guarantor Lacks Standing Under the Equal Credit Opportunity Act

By Shalia M. Sakona on September 20, 2019

Late last month, the U.S. Court of Appeals for the Eleventh Circuit held in Regions Bank v. Legal Outsource PA, No. 17-11736, 2019 WL 4051703 (11th Cir. Aug 28, 2019), that a loan guarantor does not qualify as an “applicant” for purposes of asserting claims under the Equal Credit Opportunity Act, 15 USC § 1691. The Equal Credit Opportunity Act (“ECOA”) makes it “unlawful for any creditor to discriminate against any applicant, with respect…

Financial services: Regulation tomorrow

FCA, SEC, and CFTC updated joint statement on opportunistic strategies in credit derivatives market

By Simon Lovegrove (UK) on September 20, 2019

On 19 September 2019, the FCA published an updated joint statement on opportunistic strategies in the credit derivatives market in cooperation with the US Securities and Exchange Commission and the US Commodity Futures Trading Commission. The initial joint statement made in June 2019 outlined mutual concerns about the pursuit of such strategies and the adverse impact they may have on the integrity, confidence and reputation of the credit derivatives markets, as well as markets more…

Financial services: Regulation tomorrow

German regulator publishes English version of guidance regarding outsourcing by insurers to cloud services

By Andreas Börner (DE) on September 20, 2019

The German regulator BaFin has published an English version of its guidelines published in November 2018, Link. The guidance specifies the contractual provisions which BaFin expects to be included in agreements between German regulated insurers, reinsurers and credit institutions and cloud service providers.…

Financial services: Regulation tomorrow

FCA findings from review into MiFID II unbundling reforms

By Hannah Meakin (UK) & Imogen Garner (UK) on September 20, 2019

On 19 September 2019, the FCA published a webpage summarising its research into how firms have implemented the MiFID II requirements relating to the unbundling of third-party research. MiFID II bans the receipt of all monetary and non-monetary benefits by portfolio managers in relation to their services to clients, other than minor non-monetary benefits and with the exception of third party research provided it is paid from either: (i) a firm’s own resources; or (ii)…

Financial services: Regulation tomorrow

Bank of England and FSCS update memorandum of understanding

By Simon Lovegrove (UK) on September 20, 2019

On 19 September 2019, the Bank of England (BoE) published an updated memorandum of understanding (MoU) between itself (exercising its prudential regulation functions) and the Financial Services Compensation Scheme (FSCS). The MoU sets out the framework agreed between the FSCS and the PRA. It was agreed pursuant to section 217A(1) and (2) of the Financial Services and Markets Act 2000, which places a duty on both parties to co-operate and to maintain a memorandum describing…

Financial services: Regulation tomorrow

FCA speech on improving the suitability of financial advice

By Joe Bamford (UK) & Matthew Gregory (UK) on September 20, 2019

On 19 September 2019, the FCA published a speech (delivered on 12 September 2019) given by Debbie Gupta, Director of Life Insurance and Financial Advice Supervision at the FCA on improving the suitability of financial advice. Ms Gupta states that there are four broad areas of work that the FCA is focusing on: improving standards, targeting firms that cause the most harm, supporting consumers and helping advisers. Advisers play an increasingly important role in the…

Financial services: Regulation tomorrow

MEP resolution on implementation of anti-money laundering rules

By Simon Lovegrove (UK) on September 20, 2019

On 19 September 2019, Members of the European Parliament (MEPs) passed a resolution calling for anti-money laundering (AML) rules to be better coordinated and implemented in a timely manner. The resolution was adopted with 530 votes to 14 and 104 abstentions. The date of transposition of the Fourth Anti-Money Laundering Directive was June 2017, and the Fifth Anti-Money Laundering Directive is to be implemented by January 2020. As the deadline approaches, MEPs urge Member States…

Financial services: Regulation tomorrow

German regulator updates its guidance on the EU-US Covered Agreement

By Andreas Börner (DE) on September 20, 2019

The German regulator BaFin has updated its guidance on the conduct of reinsurance business by US insurers in Germany under the provisions of the 2017 EU-US Covered Agreement (“Bilateral Agreement between the European Union and the United States of America on prudential measures regarding insurance and reinsurance”). An English language version has also been published, Link. BaFin expects that the declaration by the assuming reinsurer under Article 3(4)(f) of the Agreement that it will…

Financial

It Is Not Possible To Predict When FINRA Will Charge Something As Willful. Or Is It?

Lessons from the CFPB’s First Remittance Transfer Rule Consent Order

Eleventh Circuit Holds that a Guarantor Lacks Standing Under the Equal Credit Opportunity Act

FCA, SEC, and CFTC updated joint statement on opportunistic strategies in credit derivatives market

German regulator publishes English version of guidance regarding outsourcing by insurers to cloud services

FCA findings from review into MiFID II unbundling reforms

Bank of England and FSCS update memorandum of understanding

FCA speech on improving the suitability of financial advice

MEP resolution on implementation of anti-money laundering rules

German regulator updates its guidance on the EU-US Covered Agreement

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