On November 30, 2020, the Consumer Financial Protection Bureau (“CFPB” or “Bureau”) granted a no-action letter (“NAL” or “Letter”) to Upstart Network, Inc. (“Upstart”), a company that that has developed a model incorporating alternative data and machine learning for use
Cov Financial Services
Developments in the Financial Services Industry
Cov Financial Services, published by Covington & Burling LLP, focuses on legal issues at the intersection of financial services and regulatory policy. The blog covers topics such as true lender litigation, fintech partnerships, cryptocurrency theft and related class actions, cybersecurity risks in financial services, and regulatory developments including climate-related financial risk management for large financial institutions. It addresses challenges faced by banks, fintech companies, and other financial entities in navigating complex compliance, enforcement, and litigation matters. The content reflects ongoing trends in financial regulation, consumer protection, and emerging risks in digital assets and lending practices.
Latest from Cov Financial Services - Page 5
OCC Proposes “Fair Access” Requirements for Large Banks
On November 20, 2020, the Office of the Comptroller of the Currency (“OCC”) issued a proposed rule that would impose on large national banks and federal savings associations (collectively, “banks”) a requirement to provide “fair access” to the financial products…
CFTC News Roundup for October and November and a Look Ahead
There has been a flurry of activity at the Commodity Futures Trading Commission (“CFTC”) in recent weeks. As we reported previously, the CFTC approved three final rules, including the much-anticipated position limits rule, at its October 15 open meeting,…
Federal Banking Agencies and FinCEN Issue Joint Statement on Risk-Based Approach to Customer Due Diligence for Charities and Non-Profit Organizations
By Nikhil Gore
On November 19, 2020, the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Financial Crimes Enforcement Network, National Credit Union Administration, and Office of the Comptroller of the Currency (collectively, the “Agencies”) issued a joint fact…
Federal Reserve’s LISCC Program to Apply Only to U.S. G-SIBs
On November 6, 2020, the Board of Governors of the Federal Reserve System (the “FRB”) announced that, beginning in 2021, its Large Institution Supervision Coordinating Committee (“LISCC”) supervisory program will apply only to Category I firms as defined in the…
Privacy Oversight and the California Department of Financial Protection and Innovation
Introduction
On August 21, 2020, the California legislature enacted the California Consumer Financial Protection Law (CCFPL), which is to take effect on January 1, 2021.[1] The law renames the “Department of Business Oversight” (DBO) the “California Department of…
CFTC Announces Organizational Changes to Agency Divisions
On November 2, 2020, the U.S. Commodity Futures Trading Commission (CFTC) issued a press release announcing organizational changes to several areas of the agency’s operating divisions. According to CFTC Chairman Heath P. Tarbert, these changes are intended to better align…
OCC Issues True Lender Rule
On October 27, 2020, the Office of the Comptroller of the Currency (“OCC”) issued a final rule that determines when a national bank or Federal savings association (collectively, “banks”) makes a loan and therefore is the “true lender” in the…
Recent Developments on the German Ringfencing Regulation
I. The German Ringfencing Act
As a reaction to the financial crisis in 2007/2008 and to address risks in connection with the “too big to fail” phenomena, the German legislature issued the Ringfencing Act in 2014 (the “Act”).
In a…
CFTC Approves Three Final Rules at Open Meeting
At an open meeting on October 15, 2020, the Commodity Futures Trading Commission (“CFTC” or the “Commission”) voted to adopt three final rules. First, the Commission adopted by a 3–2 vote a final rule overhauling its regulatory framework governing speculative…