FCA warns payment firms
In a Dear CEO letter, the FCA has raised concerns that some payment firms continue to “an unacceptable risk of harm to their customers and to financial system integrity.”
The letter outlines three outcomes the regulator expects to see as appropriate action:
- ensure that your customers’ money is safe;
- ensure that your firm does not compromise financial system integrity; and
- meet your customers’ needs, including through high quality products and services, competition and innovation, and robust implementation of the FCA Consumer Duty.
EBA publishes Handbook on data submission for supervisory benchmarking
The European Banking Authority (EBA) has published online tool that provides guidance on supervisory benchmarking of internal models. The Handbook includes overviews for all applicable Q&As relevant to credit risk, market risk and IFRS9 benchmarking. More detailed information is also provided for the key credit risk elements of the data submission. The EBA says the Handbook will be regularly updated.
CFPB consults on Mortgage Loan Originator Rules
The Consumer Financial Protection Bureau (CFPB) has announced a review of Regulation Z’s Mortgage Loan Originator Rules (Loan Originator Rules) which were introduced in 2010 and 2011. In 2013, the CFPB issued additional rules amending Regulation Z to implement the Dodd-Frank Act’s amendments to the Truth in Lending Act (TILA) regarding loan originator compensation as well as the Dodd-Frank Act’s provisions prohibiting certain arbitration agreements and the financing of certain credit insurance in connection with a mortgage loan. The mortgage loan originator rules cover individuals or companies that are paid to arrange, negotiate, or obtain mortgage credit for their customers and the CFPB is mandated to review them every ten years. Deadline for the review is 1st May.
SEC charges CEO and others with fraud
The Securities and Exchange Commission (SEC) has charged American Patriot Brands Inc (APB), a cannabis cultivation and distribution company, its CEO, and five other entities and individuals for their participation in a long-running scheme in which they raised more than $30 million from more than one hundred investors across the country and siphoned off millions of those funds to enrich themselves.
“As the SEC complaint alleges, American Patriot Brands Inc. and some of its senior executives fabricated business profits and prospects to entice investors with falsehoods that in the end left investors with essentially worthless securities,” said Carolyn M. Welshhans, Associate Director of the SEC’s Enforcement Division. “This action reflects the SEC’s ongoing commitment to holding accountable those who seek to profit through lies and deception.”
ASIC charges ex-financial services director with eight counts of fraud
The Australian Securities & Investments Commission (ASIC) has charged Mark McCabe with eight counts of dishonestly obtaining a financial advantage by deception under s192E of the Crimes Act (NSW).
It is alleged between 1 January 2015 and 28 April 2021, Mr McCabe dishonestly obtained a financial advantage in the amount of $940,350 from eight people, seven of whom were clients of his companies, Guevara Capital Access Pty Ltd (Deregistered) and Online Trading Capital Pty Ltd (Deregistered).
FINRA guidance for SVB-affected members
The Financial Industry Regulatory Authority (FINRA) has issued Regulatory Notice 23-04 providing brief guidance for members affected by the recent collapse of Silicon Valley Bank.
A selected summary of key developments for regulated financial institutions
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