Special Alert: OCC Takes the Next Step Toward a Fintech National Bank CharterClinton R. Rockwell, Jeremiah S. Buckley, John P. Kromer, Walter E. Zalenski, Jeffrey P. Naimon
On December 2, 2016, the Office of the Comptroller of the Currency (“OCC”) announced its plans to move forward with developing a special purpose national bank charter for financial technology (“fintech”) companies. Accompanying the Comptroller of the Currency, Thomas J. Curry’s announcement, the OCC published a white paper that describes the OCC’s authority to grant national bank charters to fintech companies and outlines minimum supervisory standards for successful fintech bank applicants. These standards would include capital and liquidity standards, risk management requirements, enhanced disclosure requirements, and resolution plans.
Over the past several months, the OCC has taken a series of carefully calculated steps to position itself as the preeminent regulator of fintech companies in a hotly-contested race among other federal and state regulators who have similarly expressed interest in formalizing a regulatory framework for fintech companies. This proposal from the OCC reflects the culmination of those efforts.
* * *
Buckley Sandler welcomes questions regarding this new approach to fintech and banking, and would be happy to assist companies in determining whether a national bank charter would be beneficial for executing on their corporate strategies. Questions regarding the matters discussed in this Alert may be directed to any other Buckley Sandler attorney with whom you have consulted in the past.