California Regulator Signals New Scrutiny Of Student Lending Industry, Enters Into Consent Order With Servicer Of Income Share Agreements

On August 5, California’s Department of Financial Protection and Innovation (DFPI) announced that it entered into a consent order with a New York-based FinTech company that offers student Income Share Agreements (ISAs) to finance post-secondary education and training.  According to the DFPI, it is the first agreement to subject an ISA provider to state licensing and regulation.  The agreement reflects the DFPI’s decision to treat these private financing products as student loans for the purpose of the California […]

By | August 27th, 2021 ||

U.S. Federal Regulators Turn Up The Heat On Cryptocurrency Trading Platforms

With new types of digital assets and related business on the rise, federal authorities have been busy investigating.  Recently, the SEC, FinCEN and the CFTC have imposed some notable settlements involving cryptocurrency trading platforms for allegedly operating without appropriate approvals from financial regulatory authorities.  This may be the start of the next wave of government enforcement activities.  
BitMex
In FinCEN’s first enforcement action against a futures commission merchant, a high profile cryptocurrency derivatives trading platform […]

By | August 24th, 2021 ||

FFIEC Issues Updated Guidance On Authentication And Access To Financial Institution Services And Systems

On August 11, 2021, the Federal Financial Institutions Examination Council (FFIEC) issued new guidance, titled “Authentication and Access to Financial Institution Services and Systems” (“Guidance”), which provides examples of effective authentication and access risk management principles and practices for financial institutions. The principles and practices relate to access to digital banking services and information systems by customers (consumer and business), employees, third parties, apps, and devices.

The Guidance from the FFIEC, whose members include representatives from the federal […]

By | August 19th, 2021 ||