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CFPB Issues Interpretive Rule Clarifying Tech Service Providers Are Subject to CFPA | Goodwin

Regulatory development

CFPB Issues Interpretation Rules: Technology Firms and Digital Marketers Acting as Service Providers Are Subject to CFPA

On August 10, the CFPB announced that if it is materially involved in developing a content strategy, identifying or selecting prospective customers, or selecting or placing content that influences consumer engagement with respect to consumer financial products or services. . The CFPA excludes from the term “service provider” any person who provides advertising for consumer financial products or services through print, newspaper, or electronic media, or who provides time or space. ” exception does not apply to technology companies. Or a digital her marketer who goes beyond traditional advertising, such as using consumer buying or hiring behavior, personal data, or behavioral analytics models to target individuals or groups of consumers. The CFPB warned that service providers covered by the CFPA could be held liable by the CFPB, states, and other consumer protection enforcement agencies for violations of consumer financial protection laws. Also on the same day, these points were conveyed in a remark prepared by his CFPB Director Rohit Chopra at the 2022 Presidential Summit of the National Association of Attorneys General.

FDIC Releases Summer 2022 Supervisory Insights

On August 3, the FDIC released the Summer 2022 Supervisory Insightsis a publication for financial institutions, examiners, bankers, and supervisors supervised by the FDIC.

In this latest issue, we discuss the performance of commercial real estate (CRE) lending-focused banks during the pandemic and our findings on risk management practices in the CRE lending space. In addition, this issue considers the capital, investment, and financial reporting requirements applicable to banking organizations in relation to their issuance and investment of subordinated debt. Readers can also find summaries of recently announced regulations and other items of interest.

SEC Proposes Rules to Improve Clearing House Governance and Reduce Conflicts of Interest

On August 8, the SEC issued new rules to help improve the governance structure of all registered clearing organizations by reducing the potential for conflicts of interest to affect their boards or equivalent governing bodies. I suggested. The proposed rule establishes new governance requirements for board composition, independent directors, nominating committee and risk management committee. It will also require new policies and procedures regarding conflicts of interest, the board’s obligation to monitor its relationships with his providers of critical services, and the board’s obligation to consider stakeholder perspectives. The SEC previously proposed rules for clearing house governance in two of his releases from 2010-2011, but did not adopt them. In light of the changes the SEC has made to its regulatory framework for clearing houses, the SEC withdraws these previously proposed rules. The public comment period will be open for 60 days following publication of the proposed release on the SEC’s website or 30 days following publication of the proposed release with the SEC. Federal Gazettewhichever is longer.

“We believe these rules will help build a more transparent and trustworthy payment institution. This will make the market more resilient, protect investors and build trust in the market. I am pleased to support , because if adopted, this proposal will strengthen governance standards for all registered clearinghouses, especially with respect to conflicts of interest.”
– SEC Chairman Gary Gensler

goodwin news

US Crypto Regulation and Digital Goods Consumer Protection Act

Goodwin partner Grant Fond was recently interviewed on CoinDesk TV regarding the Digital Goods Consumer Protection Act, which was introduced on Wednesday, August 3, 2022. The proposed law suggests that the Commodity Futures Trading Commission (CFTC) should govern the cryptocurrency spot market. Bitcoin and Ethereum that the bill classifies as commodities.

Watch video.

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