United States

New York State finalizes regulation requiring registration of consumer credit reporting agencies

On June 25, 2018, New York State announced adoption of final Department of Financial Services (DFS) regulations that require consumer credit reporting agencies to register with the DFS. Our blog post on the regulations as proposed last fall can be found here. There were some clarifying changes to the requirements but the basic objectives of registration, … Continue Reading

American Express steers clear of antitrust law violation

On June 25, 2018, the US Supreme Court issued an opinion holding that credit-card company American Express did not violate federal antitrust law by requiring merchants to contractually agree to “antisteering provisions.” These antisteering provisions prohibit merchants from “steering” cardholders at the point of purchase away from using their American Express card in favor of … Continue Reading

Business not as usual: US Supreme Court holds that administrative law judges must be appointed—threatening years of prior decisions

On June 21, 2018, the US Supreme Court issued an opinion holding that the Securities and Exchange Commission (SEC) failed to follow the appropriate constitutional processes for appointing its administrative law judges. You can find here a detailed analysis of the decision and its ramifications not only for the SEC but for administrative law judges … Continue Reading

US financial regulators unveil proposed changes to Volcker Rule

On May 30, 2018, the Federal Reserve Board was the first of the five financial services regulators responsible for the Volcker Rule to approve proposed changes agreed by the regulators. Between May 31 and June 5, 2018, the Federal Deposit Insurance Corporation, the Comptroller of the Currency, the Commodity Futures Trading Commission and the Securities … Continue Reading

SEC’s Jay Clayton and William Hinman reiterate Howey is here to stay

In his June 6, 2018, interview with CNBC, Securities and Exchange Commission (“SEC”) Chairman Jay Clayton further clarified the regulatory landscape around cryptocurrencies, blockchain technology and initial coin offerings, nothing that the SEC would not support changing the traditional definition of a security to take into account this new technology: “Where I give you my … Continue Reading

Dodd-Frank reform legislation becomes law; no repeal but key provisions are revised

On May 24, 2018, the President signed Public Law 115-174, the “Economic Growth, Regulatory Relief, and Consumer Protection Act,” which includes some revisions to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank”), but not its wholesale repeal. The Law addresses such diverse areas as revised bank systemic risk standards, easing of … Continue Reading

Latest issue of Global Asset Management Quarterly now available

The ninth issue of our Global Asset Management Quarterly is now available. You can also register to automatically receive each issue as it is released. This publication highlights key developments that will be of interest to, and affect, our asset management clients, including market trends and developments in tax and buy-side regulation globally. Articles in … Continue Reading

More guidance on the new FinCEN “beneficial ownership” rule

In May 2016, the Financial Crimes Enforcement Network (FinCEN), the U.S. agency tasked with issuing anti-money laundering (AML) regulations, issued a final rule requiring that certain categories of financial institutions identify the beneficial owners of their legal entity customers and incorporate customer due diligence procedures into their required AML compliance programs. The regulation was effective … Continue Reading

Regulatory reform in financial services in China

On April 27, 2018, various financial regulators in China promulgated new measures further opening up the financial services industry to foreign investment, regulating non-financial entities investing in financial institutions and tightening up control over the conduct of asset management business by financial institutions. Our colleagues in Beijing and Shanghai, Sun Hong, Wang Yi, Lynn Yang, … Continue Reading

Foreign bank prevails in US Supreme Court on Alien Tort Statute Case

In an opinion issued on April 24, 2018, Jesner v. Arab Bank, PLC, a divided US Supreme Court held that litigants cannot use the Alien Tort Statute, 28 U.S.C. § 1350, to sue foreign corporations. The decision put an end to a split among the lower courts and in narrowing the ATS’s application, the decision … Continue Reading

New York State starts cryptocurrency exchange inquiry; SEC and CFTC foresee additional cryptocurrency and ICO regulation

On April 17, 2018, New York Attorney General Eric T. Schneiderman took the first steps in launching the new Virtual Markets Integrity Initiative through a fact-finding questionnaire sent to thirteen of the major cryptocurrency trading platforms. The Initiative’s focus is protecting consumers and increasing transparency for both investors and enforcement agencies.  “Yet too often, consumers … Continue Reading

Anatomy of an ICO

A growing number of companies are turning to initial coin offerings—called ICOs—as an innovative way to raise capital. But do people really know what are they and how they work? Please check out this article by Andrew Lom, Rita Astoor and Rachael Browndorf on ICOs that includes a description of what ICOs are, how the … Continue Reading

FinCEN offers additional guidance on the “beneficial ownership rule”

In May 2016, the Financial Crimes Enforcement Network (FinCEN), the U.S. agency tasked with issuing anti-money laundering (AML) regulations, issued a final rule requiring that certain categories of financial institutions identify the beneficial owners of their legal entity customers and incorporate customer due diligence procedures into their required AML compliance programs. The regulation was effective … Continue Reading

April 17 Norton Rose Fulbright New York briefing to focus on aspects of the new US tax law

Norton Rose Fulbright New York office’s next financial services briefing is a luncheon seminar set for Tuesday, April 17, 2018, at 12:00-1:00 PM EDT. Norton Rose Fulbright’s senior practitioners periodically provide interested in-house counsel and professionals with an insightful discussion on current regulatory trends within the financial services sector. The April briefing will be both … Continue Reading

FTC temporarily halts four cryptocurrency chain referral schemes

On March 16, 2018, a federal US District Court judge in Florida unsealed a March 12, 2018, temporary restraining order he had granted at the request of the Federal Trade Commission (FTC) against four individuals and their companies, relating to allegedly deceptive acts or practices involving cryptocurrencies. The order is set to expire on March … Continue Reading

U.S. federal court limits reach of credit risk retention regulations

On February 9, 2018, a three-judge panel of the United States Court of Appeals for the District of Columbia Circuit (the “D.C. Circuit”) issued a major decision regarding credit risk retention requirements. Following the 2007-2008 financial crisis, Congress passed the Dodd-Frank Act (“Dodd-Frank”) in an effort to avert a future crisis and as part of … Continue Reading

Latest issue of Global Asset Management Quarterly now available

The eighth issue of our Global Asset Management Quarterly is now available. You can also register to automatically receive each issue as it is released. This publication highlights key developments that will be of interest to, and affect, our asset management clients, including market trends and developments in tax and buy-side regulation globally. Articles in … Continue Reading

Supreme Court holds individuals must report to the SEC to qualify as whistleblowers under Dodd-Frank

On Wednesday, February 21, 2018, the US Supreme Court resolved a circuit split by unanimously holding that an employee must report suspected securities law violations to the US Securities and Exchange Commission (“SEC”) in order to qualify as a whistleblower entitled to protection from retaliation under the Dodd-Frank Wall Street Reform and Consumer Protection Act … Continue Reading

February 15 deadline looms for first DFS Cybersecurity Certification

February 15, 2018, is quickly approaching and any entity subject to New York’s cybersecurity regulation (23 NYCRR Part 500) must file its first annual certification of compliance with the New York State Department of Financial Services (DFS) by that date. New York imposes cybersecurity requirements on all entities (covered entities) subject to the jurisdiction of … Continue Reading

MetLife SIFI Lawsuit dismissed; FSOC designation process may change

On January 23, 2018, the last step occurred in the challenge by MetLife of its designation by the Financial Stability Oversight Council (FSOC) as a nonbank systemically important financial institution (SIFI) when the U.S. Court of Appeals dismissed the appeal with prejudice, approving a motion jointly filed by the MetLife and FSOC. The last remaining … Continue Reading

New security requirements issued for credit card payments on mobile devices

On January 24, 2018, the governing body for credit and debit cards, known as the Payment Card Industry (PCI) Security Standards Council, announced a new set of security requirements designed to address an increasingly popular way that merchants offer to consumers to pay for purchases: smartphones and tablets. Our colleague Susan Ross has written a … Continue Reading

February 1 Norton Rose Fulbright New York briefing to focus on Antitrust and Financial Services

Norton Rose Fulbright New York office’s next financial services briefing is a luncheon seminar set for Thursday, February 1, 2018, at 12:00-1:00 PM EST. Each month, Norton Rose Fulbright’s senior practitioners will provide interested in-house counsel and professionals with an insightful discussion on current regulatory trends within the financial services sector. The February briefing will … Continue Reading

Lawsuit by New York bank regulator over OCC fintech charter dismissed

Last month, the US District Court for the Southern District of New York dismissed the lawsuit brought last spring by the New York State Department of Financial Services (DFS) challenging the ability of the federal banking regulator, the Treasury Department’s Office of the Comptroller of the Currency (OCC), to issue a specialized bank charter to … Continue Reading
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