Skip to main content
Menu Icon Menu Icon

InfoBytes Blog

Financial Services Law Insights and Observations


Subscribe to our InfoBytes Blog weekly newsletter and other publications for news affecting the financial services industry.

  • OCC Issues Q1 2017 CRA Evaluation Schedule

    Federal Issues

    On December 2, the OCC posted its schedule of Community Reinvestment Act (CRA) evaluations to be conducted in the first quarter of 2017. In a press release accompanying the 2017 schedule, the OCC encouraged public comment on the national banks and federal savings associations scheduled to be evaluated, and suggested that “comments be submitted to the institutions themselves at the mailing addresses listed on the schedule, or to the appropriate OCC supervisory office prior to—or as early as possible during—the month in which the evaluation is scheduled.” The OCC will consider all public comments received prior to the close of the CRA evaluation.

    Federal Issues Banking OCC CRA Bank Supervision

  • Division of Corporation Finance Director Keith Higgins to Leave SEC; Shelley Parratt to Become Acting Director

    Federal Issues

    In a December 6 press release, the SEC announced that Keith F. Higgins, Director of the SEC’s Division of Corporation Finance, plans to leave the SEC in early January. Since joining the SEC in 2013, Mr. Higgins led the Division’s implementation of significant rulemaking and other responsibilities under the Dodd-Frank Act, Jumpstart Our Business Startups Act (JOBS Act), and Fixing America’s Surface Transportation Act (FAST Act). Upon Mr. Higgins’ departure, Shelley Parratt, Deputy Director for the Division of Corporation Finance, will become the acting Director. Ms. Parratt has served previously as acting Director. Ms. Parratt has served as Deputy Director of the Division since 2003, and has been responsible for assisting in strategic planning and developing Division policies and procedures and overseeing the disclosure review program. Ms. Parratt came to the SEC’s Division of Corporation Finance in 1986. She received her M.B.A. from Syracuse University and her B.A. from St. Lawrence University.

    Federal Issues Securities Dodd-Frank SEC Agency Rule-Making & Guidance

  • Legislators Appeal to CFPB Regarding Payday Loan Proposal

    Federal Issues

    In a letter sent to CFPB Director Richard Cordray on December 1, a group of Republican members of Congress expressed concern about the Bureau’s proposal regarding payday, vehicle title, and certain high-cost installment loans. The letter observes that CFPB’s proposal “attempts to further regulate an industry that is already highly regulated by nearly a dozen federal laws including the Truth in Lending Act, the Fair Credit Reporting Act, the Equal Credit Opportunity Act, and the Electronic Fund Transfer Act.” Specifically, the letter contends that the CFPB’s framework will effectively preempt existing statutory and regulatory frameworks and/or eliminate regulated small dollar credit products from the market, thereby leaving consumers without access to credit or forcing them to seek “riskier, illegal” forms of credit.

    Federal Issues Consumer Finance CFPB TILA FCRA ECOA EFTA U.S. House

  • Fed Forms Fintech Working Group

    Federal Issues

    On December 2, Fed Governor Lael Brainard announced, at the Conference on Financial Innovation in Washington DC, that the Fed has formed a Fintech working group. The move comes as the OCC takes steps toward launching a fintech bank charter. According to Ms. Brainard, the group will incorporate personnel with a broad array of expertise and will be tasked with “facilitat[ing] innovation where it has the potential to yield broad social benefit, while ensuring that risks are thoroughly managed.” While Ms. Brainard highlighted several benefits from the growth of Fintech, the Fed Governor also raised certain concerns innovations relying on data sharing could create security, privacy, and data-ownership risks, despite increased convenience to consumers. Specifically, Ms. Brainard explained, the Fed must “be attentive to the potential social benefits of these new technologies, prepared to make the necessary regulatory adjustments if their safety and integrity are proven and . . . vigilant to ensure risks are well understood and managed.”

    Federal Issues Consumer Finance Federal Reserve OCC Fintech

  • New Fed. R. Crim. P. 41(b) Takes Effect; Cyber Warrants Can Now Cross State Borders

    Federal Issues

    A change to Rule 41(b) of the Federal Rules of Criminal Procedure took effect on December 1. Amended Rule 41(b) now allows courts to issue warrants for remote access to electronic data outside their jurisdiction if the location of the information has been “concealed through technological means” or when the data is in five or more districts. Thus, under the revised rule, a magistrate judge has the authority to issue a warrant outside of their district without specific knowledge of the location of the computers being searched. By contrast, warrant requests were previously limited to the search and seizure of property within the court’s own district.

    Federal Issues Criminal Enforcement Enforcement Agency Rule-Making & Guidance

  • New Allegations Surface Regarding Israel-Based Pharmaceuticals Company

    Federal Issues

    Just weeks after announcing that it set aside approximately $520 million for a potential settlement of FCPA matters being investigated by the SEC and DOJ, Reuters reports that a spokeswoman for an Israeli pharmaceutical company has confirmed that they are investigating new potential bribes to state healthcare workers in Romania. Reuters claims to have reviewed emails sent in the past year by an anonymous tipster to the company’s CEO and audit committee that detail bribes paid to healthcare providers in exchange for recommending the company’s drugs. Romania was not among the countries the company identified as being part of the settlement discussions with the SEC and DOJ in its recent SEC filing, although the company has said it is conducting a worldwide investigation of its business practices.

    Prior Scorecard coverage of the company’s investigation can be found here.

    Federal Issues FCPA International SEC DOJ

  • Former President of Nicaraguan Soccer Federation Pleads Guilty in FIFA Investigation

    Federal Issues

    On December 7, a former president of a Nicaraguan soccer federation, pleaded guilty to racketeering conspiracy and wire fraud conspiracy charges. The guilty plea came in response to allegations that the former president accepted approximately $150,000 in bribes for helping an American company acquire media rights to FIFA events. As part of the plea, the former president agreed to forfeit almost $300,000 and could be sentenced to a maximum of 20 years for each count. Last month, the former president of the American company also pleaded guilty to racketeering and wire fraud conspiracy charges alleging that the former president arranged bribe payments totaling more than $14 million dollars in exchange for media and marketing rights to international soccer tournaments and matches.

    The former president was indicted by the DOJ in May 2015 along with 13 other FIFA officials. The former president was the final official to be extradited to the United States. The sprawling investigation has resulted in multiple other guilty pleas from former FIFA officials. Prior Scorecard coverage on the FIFA investigations can be found here.

    Federal Issues FCPA International DOJ

  • OCC to Consider Fintech Charter Applications; Seeks Comment

    Federal Issues

    On December 2, the OCC announced that it would move forward with considering applications from financial technology (Fintech) companies to become special-purpose national banks. In prepared remarks delivered at the Georgetown University Law Center, Comptroller of the Currency Thomas Curry explained, among other things, that “having a clear process, criteria, and standards for Fintechs to become national banks ensures regulators and companies openly vet risks and that the institutions that receive charters have a reasonable chance of success.”

    Accompanying his decision, the OCC published a paper discussing the issues and conditions that the agency will consider in granting special purpose national bank charters. According to the paper, in order to apply for a special-purpose charter, a company must engage in fiduciary activities, or one of the three core banking functions: lending money, paying checks or receiving deposits. The paper is available on the agency’s website at and comments may be submitted through January 15, 2017.

    Federal Issues Digital Commerce OCC Fintech Privacy/Cyber Risk & Data Security

  • FCC Denies Petition by MBA to Exempt Certain Mortgage Servicing Calls from Prior Express Consent Requirement

    Federal Issues

    In an order dated November 15, the FCC’s Consumer and Governmental Affairs Bureau denied a petition by the Mortgage Bankers Association (MBA) that sought an exemption from the FCC’s prior express consent requirement for non-telemarketing residential mortgage servicing auto-dialer calls to wireless numbers. In its order, the Bureau concluded that MBA had failed to show (1) that the calls in question would be free of charge to consumers; and (2) that the parties seeking relief should be able to send non-time-sensitive calls to consumers without their consent.

    Among other things, the Order explained that the Telephone Consumer Protection Act (TCPA) “reflects Congress’ recognition of the potential costs and privacy risks imposed on wireless consumers from the use of auto-dialer equipment, which can generate large numbers of unwanted calls” and accordingly, the FCC has generally attempted to balance and accommodate the legitimate business interests of callers in addition to recognized consumer privacy interests.

    Federal Issues Consumer Finance TCPA FCC U.S. Senate U.S. House Privacy/Cyber Risk & Data Security

  • CFPB Issues Advisory Bulletin on Detecting and Preventing Consumer Harm from Production Incentives

    Federal Issues

    In a November 28 advisory bulletin entitled Detecting and Preventing Consumer Harm from Production Incentives, the CFPB highlights examples from its supervisory and enforcement experience in which incentives contributed to substantial consumer harm. The bulletin also describes compliance management steps that supervised entities should take to mitigate risks posed by incentives. Among other things, the CFPB clarifies that it is not outlawing sales incentives or other similar programs, but rather is cautioning companies that such programs can lead to abuse. As explained in the bulletin, “[t]ying bonuses or employment status to unrealistic sales goals or to the terms of transactions may intentionally or unintentionally encourage illegal practices such as unauthorized account openings, unauthorized opt-ins to overdraft services, deceptive sales tactics, and steering consumers into less favorable products.”

    Federal Issues Consumer Finance CFPB Compliance Sales Incentive Compensation