August 17, 2018

Consumer Financial Services Practice Digest

2 min


A Guide to the OCC's Fintech Charter Licensing Manual

The OCC announced it will begin accepting applications for a special-purpose national bank charter from nondepository fintech companies. The OCC's July 31, 2018 announcement was accompanied by the release of a policy statement reaffirming the agency's commitment to offering a Fintech Charter and describing the standards and expectations for a successful applicant, and a licensing manual supplement that provides the framework for how the agency will evaluate Fintech Charter applications.

Treasury Maps Out Its Vision of the Future Regulation of Fintech

The Treasury Department recently released a report on the regulation of fintech firms and data aggregators. The report includes 80 recommendations to Congress and regulators for promoting innovation in financial services. For fintechs, banks, and other stakeholders, the report builds on prior Treasury reports and provides insight into the federal government’s plans for shaping the future of the non-bank financial services industry. We provide key takeaways and highlights from the report, including an overview of emerging trends in the financial industry and a summary of the Treasury’s recommendations.

Developments at the Bureau of Consumer Financial Protection in the Mulvaney Era

Acting Director Mick Mulvaney is making significant changes at the Bureau of Consumer Financial Protection. This article first published in The Review of Banking & Financial Services discusses these changes, beginning with the now concluded litigation over his appointment and President Trump's nomination of a new, permanent Director. The article then turns to Mulvaney's statements detailing his vision and themes for the Bureau, and developments in regulations and rule-making. It concludes with a description of recent enforcement actions and Mulvaney's informal guidance on future supervisory activities.

Emerging State Tax and Other Issues for Payment Processors

As the payments industry develops and deploys new technology, policymakers are working to update outdated laws and write new ones. In addition to modernizing the regulatory environment, many states are looking to the payments industry to change how payments are conducted or help raise revenue and close their budget gaps. This article first published for the Merchant Acquirers' Committee (MAC) Government Relations Newsletter discusses how with the Electronic Transactions Association leading the charge, the industry has fought back against these efforts and achieved some notable successes. But as recent developments show, many challenges for the industry remain. Moreover, as different states devise new ways to drum up revenue from payment processors, other states may look to follow suit.