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“True Lender” Litigation on the Rise: Recent Litigation and Enforcement Actions Challenge Traditional Bank Partnership Model

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Over the last two years the financial industry has seen an uptick in litigation and enforcement actions aimed at banks and their non-bank lending partners. These actions have primarily challenged the validity of the bank partnership model that is used by many non-bank lenders to generate consumer and small dollar... Read More

Topics: Banking, Consumer Protection, Litigation

U.S. House of Representatives Acts to Create New Category of Exempt Transaction Under the Securities Act of 1933

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On November 9, 2017, the U.S. House of Representatives passed the Micro Offering Safe Harbor Act.  The vote was largely along party lines, with Rep. Walter Jones from North Carolina’s third district casting the lone Republican dissenting vote.  The Act, as we previously reported here, resurrected a failed bill introduced... Read More

Topics: Broker-Dealer, Consumer Protection, Public Companies and Securities

FTC Announces Regulatory Reform Process

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The FTC explained it was undertaking the following regulatory reform steps in a press release: New groups within the Bureau of Competition and the Bureau of Consumer Protection are working to streamline demands for information in investigations to eliminate unnecessary costs to companies and individuals who receive them. Both enforcement... Read More

Topics: Consumer Protection, M&A, Trump

SEC and North American Securities Administrators Association Sign Information-Sharing Agreement

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On February 17, 2017, the Securities and Exchange Commission (SEC) and the North America Securities Administrators Association (NASAA) entered into an information-sharing agreement in connection with intrastate crowdfunding and regional offering rules. As these new rules begin to take effect, NASAA and the SEC plan to share information regarding their observations of... Read More

Topics: Consumer Protection, Crowdfunding

Legislation Creating Small Business Advocacy within the SEC Heading to the President’s Desk

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On December 10, the SEC Small Business Advocate Act was approved by the Senate, clearing the way for signature by the President. The measure, which creates an advocacy office for the interests of small businesses within the SEC, came out of the House, where it was first proposed back in... Read More

Topics: Broker-Dealer, Consumer Protection, Public Companies and Securities

House Passes Creating Financial Prosperity for Businesses and Investors Act

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On Monday, the House of Representatives passed the Creating Financial Prosperity for Businesses and Investors Act (H.R. 6427) (the “Act”) by a vote of 398 to 2. The Act is actually a compilation of six measures that were previously considered and passed by the House in 2016, but that have... Read More

Topics: Broker-Dealer, Consumer Protection, Crowdfunding, Investment Advisers, Private Equity

The New York State Department of Financial Services Proposes Robust Cybersecurity Rules

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On September 13, 2016, the New York State Department of Financial Services (DFS) proposed new rules that would require certain “Covered Entities” to establish and implement cybersecurity programs designed to protect nonpublic consumer information (Nonpublic Information) and technology systems from cyber-attacks (Proposed Rules). Below are some of the highlights of the Proposed... Read More

Topics: Banking, Consumer Protection, Insurance, Uncategorized

CFPB’s Structure Ruled Unconstitutional but it Avoids Being Dismantled

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On October 11, 2016, the United States Court of Appeals for the D.C. Circuit issued its highly anticipated opinion in PHH Corp., et al. v. CFPB, holding that the Consumer Financial Protection Bureau’s (CFPB) structure is unconstitutional. The underlying case arose following a CFPB administrative enforcement action against PHH Corp.... Read More

Topics: Banking, Broker-Dealer, CFPB, Consumer Protection, Litigation