On January 16, 2019, the Consumer Financial Protection Bureau and the New York Attorney General announced a settlement with a retailer for alleged violations of the Consumer Financial Protection Act of 2010 and the Truth in Lending Act, as well as New York State law arising out of the retailer’s sales practices for its store credit cards. As part of the settlements, the retailer is required to pay $10 million in civil money penalties to…
At the end of last year I wrote a published piece entitled “The Allure of Investing in Aviation”. A client asked me this week whether, a year later, I stood by what I’d written. To answer that, you have to decide whether or not you think 2018 was a good year for the airline industry as a whole. There were many highs, but some telling lows as well. There can be no doubt…
The CFPB announced yesterday that it has transmitted a proposal to Congress that would give it clear authority to conduct supervisory examinations for compliance with the Military Lending Act (MLA). Last summer, former CFPB Acting Director Mulvaney reportedly announced that he planned to end routine examinations for MLA compliance because the Dodd-Frank Act did not give the CFPB the authority to conduct such examinations.  For the reasons we detailed, we agreed with Acting Director…
The Supreme Court and the Third Circuit decided three cases in the last week relating to the interpretation and enforceability of arbitration agreements. We discuss them below. Third Circuit Compels Arbitration of an E-Signed Enrollment Agreement The Third Circuit compelled arbitration of an agreement signed electronically by a student taking online courses. In Dicent v. Kaplan University, Maria Dicent, who represented herself in the case, filed a complaint against Kaplan University for various causes of…
In Thompson-Harbach v. USAA Fed. Sav. Bank, No. 15-cv-2098-CJW-KEM, 2019 U.S. Dist. LEXIS 3687 (N.D. Iowa Jan. 9, 2019), the Northern District of Iowa provided a deep dive into recent Telephone Consumer Protection Act case law and a retrospective look into Federal Communications Commission TCPA pronouncements.  After its informative analysis, the Court held that ACA Int’l v. FCC, 885 F.3d 687 (D.C. Cir. 2018), invalidated not only the FCC’s 2015 Declaratory Ruling but also…
According to a report issued earlier this month, the Maryland Financial Consumer Protection Commission is considering the adoption of the “Model State Consumer and Employee Justice Enforcement Act” developed several years ago by the National Consumer Law Center. The Model Act proposes a number of “state interventions” aimed at preventing the alleged harms caused by “forced arbitration.”  Based upon the Model Act and the U.S. Consumer Financial Protection Bureau’s since-repealed final arbitration rule, the…
On 17 January 2019, the PRA published Policy Statement 2/19: Regulatory transactions – changes to notification and application forms (PS2/19). PS2/19 provides the final rules and forms to to its earlier consultation (CP21/18) (our blog is here). The PRA received no responses to its consultation. The PRA is consequently making the changes to the rules and forms as consulted with minor amendments, these changes affect: Branch Notification Form; Cross Border Services Notification Form; Passporting…
On 17 January 2019, the International Organization of Securities Commissions (IOSCO) published a report setting out its views on good practices for audit committees of listed companies in supporting external audit quality. The report notes that whilst the auditor has primary responsibility for audit quality, the audit committee should promote and support quality and thereby contribute to greater confidence in the quality of information in the listed company’s financial reports. The report is therefore intended…
On 17 January 2019, the Basel Committee on Banking Supervision (Basel Committee) issued a press release announcing that it has completed a review of its 2008 principles for sound liquidity risk management and supervision. The review confirmed that the sound principles remain fit for purpose, and the Basel Committee advises banks and supervisors to remain vigilant of liquidity risks in financial markets. All Basel Committee member jurisdictions have now implemented the Sound Principles through: regulation,…
On 17 January 2019, there was laid before Parliament a draft version of The Equivalence Determinations for Financial Services and Miscellaneous Provisions (Amendment etc) (EU Exit) Regulations 2019, together with an explanatory memorandum.  The draft statutory instrument forms part of the UK Government’s contingency planning for a no deal Brexit and is made under the European Union (Withdrawal) Act 2018. It addresses deficiencies in relation to the EU’s equivalence framework and retained EU…

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