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MoFo Reenforcement

The Enforcement Blog

EVENT: Teleconference: Canadian Bail-in and TLAC – Impact on Capital Markets Transactions

Posted in Events

Wednesday, September 13, 2017
11:00 a.m. – 12:00 p.m. EDT

Morrison & Foerster and Osler, Hoskin & Harcourt Teleconference

During this teleconference, the panelists will address the proposed Canadian federal rules relating to (a) Bank Recapitalization (Bail-in) Conversion Regulations and (b) Total Loss Absorbing Capacity (TLAC). These rules are expected to have a significant impact on how the major Canadian banks (D-SIBs) offer debt securities in Canada, the U.S. and elsewhere. In particular, the speakers will focus on navigating a variety of issues:

  • The expected regulatory framework and capital requirements;
  • Changes to debt offering programs, including indenture terms and covenants;
  • Changes to offering documents delivered to investors;
  • The impact on structured note offerings; and
  • The process for compensating debtholders.

Speakers:

  • Kashif Zaman, Partner, Osler, Hoskin & Harcourt LLP
  • Lloyd Harmetz, Partner, Morrison & Foerster LLP

CLE credit is pending for California and New York.

For more information, or to register for this complimentary teleconference, please click here.

CFPB Unveils Prototype Model Forms for Overdraft

Posted in CFPB

On August 4, 2017, the CFPB released four “prototype” model overdraft disclosure forms styled under its “Know Before You Owe” initiatives with a press release. The CFPB said the forms were designed to clarify the risks and costs of overdraft coverage for consumers. The press release and forms were accompanied by a report entitled Data Point: Frequent Overdrafters, highlighting the habits of the small group of consumers who initiated the most overdrafts per year.

Read our client alert.

OCC Seeks Public Comment on the Volcker Rule

Posted in Regulatory Developments

Section 13 of the Bank Holding Company Act (the “Volcker Rule”) and its implementing regulations (the “Implementing Regulations”) generally prohibit banking entities from engaging in proprietary trading and from investing in, sponsoring, or having certain relationships with covered funds. On August 2, 2017, the OCC submitted to the Federal Register a notice requesting public comment on how the Implementing Regulations should be revised to better accomplish the purposes of the Volcker Rule while decreasing the compliance burden on banking entities and fostering economic growth (the “Notice”). The Notice also requests input concerning “how the existing rule could be implemented more effectively without revising the regulation.”

Read our client alert.

Entering the HMDA Homestretch: CFPB Proposes Temporary Increase in HELOC Reporting Threshold, Releases New and Updated Filing Resources

Posted in CFPB, Mortgage, Regulatory Developments

As we have previously reported, in October 2015, the CFPB issued a sweeping final rule (“2015 Final Rule”) to amend Regulation C, which implements the Home Mortgage Disclosure Act (HMDA). The bulk of the 2015 Final Rule will become effective on January 1, 2018. With the effective date drawing nearer, the CFPB has proposed an amendment to the 2015 Final Rule, which would, for calendar years 2018 and 2019, increase the threshold for collecting and reporting data on home equity lines of credit (HELOCs). Specifically, the proposed amendment would require only those institutions originating 500 or more HELOCs in each of the two preceding years to collect and report HMDA data on HELOC originations and applications. Additionally, the CFPB has recently released several new and updated resources for HMDA filers, including an illustrative guide to assist filers in preparing loan/application registers for data collected in 2018 and beyond. This alert summarizes these recent developments.

Read our client alert.

EVENT: Core Principles for Financial Regulation

Posted in Events, Regulatory Developments

Tuesday, September 12, 2017
Registration: 8:00 a.m. – 8:30 a.m.
Seminar: 8:30 a.m. – 10:00 a.m.

Morrison & Foerster LLP
250 West 55th Street
New York, NY 10019

Join us as presenters from Morrison & Foerster LLP and The Brattle Group share their views and predictions regarding:

  • the Presidential Orders relating to deregulation;
  • the Treasury Department’s initial report regarding the core principles of financial regulation;
  • the Financial CHOICE Act and its principal provisions;
  • the areas of regulatory reform as to which compromise may be possible; and
  • the likely path forward for regulatory reform and what you should expect in 2017.

Speakers:

  • Elaine Buckberg, The Brattle Group
  • Chris Laursen, The Brattle Group
  • Oliver Ireland, Morrison & Foerster LLP
  • Anna Pinedo, Morrison & Foerster LLP

Click here to register.

Continuing Legal Education Credits: Credit is pending for New York and California.

Faster Payments Task Force Sets Goals and Recommendations for Faster Payments by 2020

Posted in Electronic Payments, Mobile Payments

On July 21, 2017 the Federal Reserve’s Faster Payments Task Force released the Faster Payments Task Force Final Report Part Two. The Final Report is a follow-up to Part One of the Faster Payments Task Force Final Report, which was published in January 2017 and provided an overview of the Task Force’s objectives and a description of the payments landscape. The Final Report summarizes the specific faster payments solution proposals submitted to and analyzed by the Task Force, as well as the Task Force’s goals and recommendations for developing an ecosystem that is conducive to the development of faster payments solutions, with an ultimate goal of developing a payments system that is faster, ubiquitous, and secure by 2020.

Read our client alert.

Acting Comptroller Endorses Fintech Charters

Posted in Regulatory Developments

In July 19, 2017 remarks prepared for delivery to the Exchequer Club in Washington, D.C., Acting Comptroller of the Currency Keith Noreika expressed his support for the Office of the Comptroller of the Currency’s efforts to establish national bank charters for financial technology companies. In endorsing the OCC’s so-called fintech charter, he noted that the business of banking has evolved and stated that the OCC’s approach to innovation brings fintech companies “out of the shadows and into a well-established supervisory and regulatory regime that will promote their safety and soundness.”

Read our client alert.

CFPB Publishes Final Arbitration Rule in Federal Register

Posted in Arbitration, CFPB, Regulatory Developments

A mere nine days after releasing its Final Rule regarding arbitration to the public, the CFPB has published the Final Rule in the Federal Register. This is significant because publication in the Federal Register triggers the countdown to the Final Rule’s effective date (60 days after publication) and ultimately its application to new agreements (180 days after the effective date). By our calculations, the Final Rule becomes effective on September 17, 2017, and will apply to new agreements entered into on or after March 16, 2018. Check out our Client Alert, which explains the Final Rule in greater detail.

The CFPB Issues Its Final Arbitration Rule

Posted in Arbitration, CFPB, Regulatory Developments

Ending months of speculation and insider reading of tea leaves, on July 10, 2017, the CFPB published a final rule regarding the use of arbitration agreements in specified consumer financial contracts. As was substantively expected, the Final Rule: 1) bars class action waivers; and 2) imposes reporting requirements for individual arbitrations conducted pursuant to pre-dispute arbitration agreements. The Final Rule is accompanied by more than 740 pages of Supplementary Information in which the CFPB largely repeats the findings of its earlier Report to Congress and the Supplementary Information that accompanied its Proposed Rule and concludes that class action litigation and CFPB monitoring of individual arbitrations are both “in the public interest” and “for the protection of consumers.”

Read our client alert.

OCC Releases Semiannual Risk Perspective: Fintech is Risky?

Posted in Regulatory Developments

On July 7, 2017, the Office of the Comptroller of the Currency released its Semiannual Risk Perspective report identifying the risks faced by national banks and federal savings associations in the 12-month period ending December 31, 2016. The Report, which is intended to highlight key risk issues facing the federal banking system, noted that strategic, credit, operational and compliance risks of banks remained a “top concern” for the agency during this period. The Report comes at a time of heightened interest in, and increased regulatory scrutiny of, Fintech companies offering traditional bank products such as loans. The OCC signaled earlier this year that the agency would begin considering possible special purpose national bank charters to Fintech companies. The strong tone of the Report is noteworthy because of the highly publicized criticisms of the OCC’s efforts in this regard.

Read our client alert.