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MoFo Reenforcement

The Enforcement Blog

2018: Business As (Un)usual – European Financial & Regulatory Developments into 2018

Posted in Regulatory Developments

2017 in the UK and the rest of Europe seems to have been primarily a year devoted to implementation – both of political decisions already made and of legislation that had already been enacted.  On the political front, Brexit continued to dominate many conversations around EU financial services.  Theories circulated that EU decisions on various equivalence and passporting provisions, intended to be based on regulatory system comparisons, were being delayed for political reasons linked to the continued non-finalization of a deal on the post-Brexit relationship between the UK and the rest of the EU.  After Brexit, it is likely that UK financial services entities will lose the benefit of EU financial “passports” and may need to try and utilize the existing provisions on equivalence for non-EU countries.  Equivalence is a recognition from the EU that the non-EU country’s financial regulations and supervision are of the same standard as those of the EU.  Given that the UK, as a member state of the EU, already has such standards in place, granting equivalence status to the UK post-Brexit would be a logical step.  However, politics and logic make strange bedfellows.  UK financial services entities will be watching this area closely in 2018.

Read our annual outlook report, where we set out our summary of the progress of some important areas of financial regulation in 2017 and look ahead to expected developments in 2018.

CFPB Starts Review of Administrative Adjudications

Posted in CFPB

The CFPB issued its second in a series of Requests for Information on January 31, 2018; this one dealing with administrative adjudications. In the associated press release, the Bureau explained that it “is seeking to better understand the benefits and impacts of its use of administrative adjudications, and how its existing process may be improved.”

The CFPB is currently issuing a series of RFIs to “ensure the Bureau is fulfilling its proper and appropriate functions to best protect consumers.”

Read our client alert.

PHH v. CFPB: Beyond the Headlines, A Big Win For Industry

Posted in CFPB, Mortgage

The D.C. Circuit’s long-awaited en banc decision in PHH v. CFPB upheld the constitutionality of the CFPB’s single-director structure in the face of a constitutional attack.  But don’t be fooled by the headlines:  under-the-radar parts of the decision were  big wins for the mortgage industry and the rule of law.

Read our client alert.

With CID Request, CFPB Follows Through on Plan to Review Functions

Posted in CFPB

On January 26, 2018, the CFPB published a Request for Information in the Federal Register regarding the Bureau’s Civil Investigative Demand processes. According to the Bureau’s related press release, the RFI is the first part of Acting Director Mick Mulvaney’s “call for evidence” about the Bureau’s functions. As presaged in the Bureau’s press release, the RFI is designed to “ensure the Bureau is fulfilling its proper and appropriate functions to best protect consumers” and to facilitate updating, streamlining, and revising agency processes “to better achieve the Bureau’s statutory and regulatory objectives.”

Read our client alert.

CFPB Amends Prepaid Accounts Rule and Delays its Effective Date

Posted in CFPB, Credit Cards, Regulatory Developments

On January 25, 2018, the CFPB finalized amendments to its final Prepaid Accounts Rule, which was published in November 2016. The Bureau stated that the 2018 Amendments finalize revisions proposed in June 2017 “generally as proposed, with certain modifications.” The 2018 Amendments address some of the issues raised by industry and delay the effective date for all provisions of the Final Rule until April 1, 2019.

Read our client alert.

EVENT: Complimentary Teleconference – Financing Fintech: State Regulation of Marketplace Lenders as Loan Brokers or Arrangers of Credit

Posted in Events

Thursday, January 25, 2018
5:00 p.m. – 5:45 p.m. EDT

Join us for one of our upcoming monthly telephone briefings led by members of our Fintech team:

This call will be an operator-assisted call of approximately 45 minutes in duration, and will be followed by a brief Q&A opportunity. We also invite you to submit questions before the start of the call. A replay will be available upon request.

In order to RSVP for the January call, and to submit questions, please email us.

CFPB Announces Review of Agency’s Functions

Posted in CFPB

On January 17, 2018, the CFPB announced that it soon will begin issuing a series of Requests for Information to “ensure the Bureau is fulfilling its proper and appropriate functions to best protect consumers.” The CFPB said the RFIs will seek public comment on enforcement, supervision, rulemaking, market monitoring, and education activities, with the goal of providing “an opportunity for the public to submit feedback and suggest ways to improve outcomes for both consumers and covered entities.”

Read our client alert.

EVENT: Regulatory Burden Relief and Reform & What to Expect

Posted in Events

IFLR Webinar
Thursday, January 18, 2018
12:00 p.m. – 1:30 p.m. EST

There was no shortage of news in 2017 and the year ended as dramatically as it began. In this session, we will provide a focused recap of the most significant developments related to regulatory burden relief in the United States. We also will share our insights and predictions regarding the changes to anticipate and prepare for in 2018 in the following key areas:

  • regulatory relief measures taken by or under consideration by the banking agencies;
  • legislative regulatory relief measures affecting financial institutions;
  • the future of the CFPB and fintech related developments;
  • a fiduciary or best interests standard for broker-dealers, the likely next steps to be taken by the SEC and where things stand with the Department of Labor’s rule;
  • the SEC’s rulemaking and enforcement agenda for investment funds and investment advisers;
  • SEC rulemaking priorities likely to affect capital formation; and
  • legislative proposals relating to the securities laws.


Click here to register. For more information please contact Trevor Starer at tstarer@mofo.com.

EVENT: LoanTape Legal + Regulatory Conference

Posted in Events

Tuesday, January 30, 2018

TKP Conference Center
109 West 39th Street
New York, NY 10018

Please join Morrison & Foerster for the LoanTape Legal + Regulatory Conference in New York. Don Lampe will speak on “Key Issues in Madden v. Midland Funding” and Crystal Kaldjob will moderate the “Unique Legal/Regulatory Position of Nonbank Lenders” panel.

Click here to register.

Department of Defense Publishes Amends and Adds Further Guidance on Military Lending Act Regulations

Posted in Fair Lending, Military Issues

On December 14, 2017, the Department of Defense published final interpretive rules (the “2017 Interpretive Rule”) amending previously issued interpretive rules on the Military Lending Act. The 2017 Interpretive Rule amends and replaces three specific questions and answers in the interpretive rules issued by the DOD in August 2016, while also adding a new question. Although the 2017 Interpretive Rule clarifies several ambiguities in the regulation, the limited scope of the Rule leaves many questions unanswered.

Read our client alert.