Consumer Financial Protection Bureau (CFPB)

BCFP Files Lawsuit

The BCFP recently filed a lawsuit against Future Income Payments, LLC (FIP), Scott Kohn, and several other related entities. The law suit was filed in California and alleges that these entities violated the Consumer Financial Protection Act of 2010 12 U.S.C. § 5536(a)(1)(B). This violation occurred when these entities led consumers to believe that their pension-advance products were not loans with interest and were cheaper than credit card debt. In reality, these products had interest rates that were higher than regular credit card rates.


Financial Crimes Enforcement Network (FinCEN)

FinCEN Grants Exceptive Relief Regarding the Beneficial Ownership Rule

FinCEN recently granted exceptive relief to covered financial institutions regarding the Beneficial Ownership Requirements for Legal Entity Customers (Beneficial Ownership Rule). This relief deals with the Rule’s requirements to identify and verify the identity of a beneficial owner when a legal entity customer opens a new account as a result of a rollover of a certificate of deposit, a renewal, modification, or extension of a loan that does not require underwriting review and approval, a renewal, modification, or extension of a commercial line of credit or credit card account that does not require underwriting review and approval, and a renewal of a safe deposit box rental. The exception only applies to the rollover, renewal, modification, or extension occurring on or after May 11, 2018.

The Office of the Comptroller of the Currency (OCC)

Agencies Extend Comment Period for Volcker Rule Change

Several agencies recently extended the comment period for changes to the Volcker Rule, which restricts banking entities from engaging in proprietary trading and from owning or controlling hedge funds or private equity funds. These changes are meant to simplify compliance requirements of the Rule. The comment period has been extended to October 17, 2018.


Amendments Made to Swap Margin Rule 

Several federal agencies accepted amendments to the swap margin requirements. These amendments were made to meet the requirements of new restrictions on certain qualified financial contracts of systemically important banking organizations (QFC Rules).

The amendments state that legacy swaps entered into before the compliance date will not become subject to the margin requirements if they are amended solely to comply with the requirements of the QFC Rules. The amendments also change the definition of “Eligible Master Netting Agreement” in the swap margin rule to more closely match recent changes to the definition of “Qualifying Master Netting Agreement”.


Securities and Exchange Commission

SEC Offers Regulatory Relief to Hurricane Victims

The SEC recently announced that it will be providing relief to certain companies and individuals affected by Hurricane Florence that are required to provide information to the SEC and shareholders. Because of property loss, power loss, transportation difficulties, and mail delivery issues, the SEC issued an order that exempts affected entities and individuals from certain requirements of the federal securities law under certain conditions. They also extended deadlines for the filing of specific reports and forms.