Bernice Lim

Ian Weinstock and Heather Fincher outline the various modifications included in the #Treasury Department’s new proposed regulations on foreign trusts and large foreign gifts in our latest client alert. As Ian and Heather note, taxpayers have been waiting for nearly thirty years for the #IRS to issue regulations related to foreign trusts and foreign gifts. Since 1996, when Congress enacted a myriad of provisions to prevent tax avoidance through the use of foreign trusts and gifts, taxpayers have had to rely on less formal guidance on those provisions. But Treasury and the IRS, at last, published their new proposed regulations last week. #wealthmanagement #tax #taxlaw #taxplanning https://lnkd.in/egYGgt27

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In February 2024, Piermont Bank and Sutton Bank each became subject to consent orders issued by the Federal Deposit Insurance Corporation (FDIC). The orders highlighted purported shortcomings in the banks' Banking as a Service activities and partnerships with FinTech firms. Piermont Bank, headquartered in New York City, was found to have ‘engaged in unsafe and unsound banking practices’ and lacked the necessary internal controls and information systems commensurate with the bank's size and the risk associated with its third-party relationships, according to the FDIC's consent order. Meanwhile, Sutton Bank, based in Attica, Ohio, faced similar charges of unsafe or unsound banking practices and violations of the Bank Secrecy Act in a separate order. The FDIC's regular release of consent orders has increasingly focused on banks' FinTech partnerships. In February, Lineage Bank of Franklin, Tennessee, was required to enhance its risk management program, bolster capital levels, and sever certain FinTech partnerships. Blue Ridge Bank, Cross River Bank, and First Fed Bank have also faced consent orders related to their FinTech ties, although not exclusively from the FDIC. Source: https://lnkd.in/ejwTq6if Sign up for more news updates like this in our daily newsletter: https://lnkd.in/eskQx7Ym #banking #security #cybersecurity #banks #compliance #regulator #financialservices #financialtechnology #fintechnews

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The Consumer Financial Protection Bureau (CFPB) recently issued an interpretive rule clarifying the applicability of subpart B of Regulation Z to lenders that issue digital user accounts used to access Buy Now, Pay Later (BNPL) loans. This move aims to ensure that these lenders meet the criteria for being "card issuers" under Regulation Z, which includes provisions governing periodic statements and billing disputes. As the BNPL market continues to expand, this interpretive rule holds significant implications for startups offering BNPL services and companies partnering with BNPL providers. Read more here ➡ https://lnkd.in/eyqgyGkt #CFPB #BNPL #RegulationZ #Fintech #Startups #ConsumerProtection #LegalCompliance #DigitalFinance #FintechRegulation #BNPLProviders

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Many compliance professionals are wondering what is next after the United States Court of Appeals for the Fifth Circuit Court’s decision to vacate the Securities and Exchange Commission’s (SEC) recently adopted Private Fund Adviser Rules. In this three-part video series on the “Private Fund Adviser Rules: Best Practices,” TaNeka Ray, J.D., LL.M., Senior Manager for EisnerAmper’s Regulatory Risk & Compliance Solutions, shares insights on how SEC examinations and enforcement actions will focus on PFAR, starting with fairness or valuation opinions in adviser-led secondaries. For more insights, visit: https://okt.to/4eEaZK

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The cryptocurrency industry has experienced meteoric growth, accompanied by heightened regulatory scrutiny. Anti-Money Laundering (AML) and Know Your Customer (KYC) compliance have emerged as paramount challenges for cryptocurrency businesses, demanding careful navigation through a complex regulatory landscape.

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📢 Treliant Takeaway: NYDFS Guidance on Customer Service for VCEs The New York State Department of Financial Services' recent guidance regarding customer service requests and complaints for Virtual Currency Entities (VCEs) identified a need for significant improvements in the way VCEs handle customer service and complaints. Michael Scarpa's recent Treliant Takeaway breaks down the key highlights, next steps for VCEs to stay ahead of the curve, and how we are equipped to help meet regulatory expectations. #VirtualCurrency #RegulatoryCompliance #ComplaintsManagement #CustomerService

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More Spokeo (and Transunion v. Ramirez) influences in the debt collection space....mere confusion resulting from not following the fair Debt Collection Practices Act (FDCPA) law does not create sufficient standing to bring an action. Folks who are not lawyers or who don't engage in consumer litigation likely wonder why I often reference Spokeo. I am referring to a prior U.S. Supreme Court case that held that even if a party violates the letter of the law, you (as a private litigant) still may be unable to sue them in (federal court) unless you can prove how you were concretely damaged by that violation. In the consumer financial services and privacy law worlds, Congress has created many laws with specific conduct requirements , such as requiring a debt collector to reveal the name of the original creditor in a debt collection communication so the debtor can lookup other details related to the transaction that created the debt. Under the Spokeo doctrine, if these conduct requirements are violated, you still may have no basis to sue unless you can prove some form of concrete damage to you. In the data privacy realm, this sometimes means that those who have had their data improperly leaked (the Leakee ?) have no cause of action against the Leaker unless the Leakee can show he/she was damaged somehow by the violation.

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💡 News Update FINRA Issues Guidance on AI Use in Financial Services, Emphasizing Governance and Compliance The Financial Industry Regulatory Authority (FINRA) has released a comprehensive guidance document addressing the use of generative artificial intelligence (GenAI) and large language models (LLMs) within the financial services industry. The document underscores the importance of regulatory compliance and the need for robust AI governance to safeguard investor interests and ensure market integrity. #AI #finra #news https://lnkd.in/dpdcEe4v

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To the likely surprise of providers of buy now, pay later (BNPL) financing, the #CFPB recently issued an interpretative rule stating that BNPL products are actually "credit cards" under the Truth in Lending Act and BNPL providers are "card issuers" and therefore "creditors" under, and subject to, Regulation Z. Scott Pearson, Bryan Schneider and Eric Knight explain the significance here:

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Supreme Court SEC Disclosure Ruling Confusing for Courts, Markets (via Bloomberg Law): https://lnkd.in/e92Vf4uB #SEC #financialcompliance #financialcompliancenews #compliance #BloombergLaw

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Yesterday I shared a post about how we are revolutionizing the way we provide legal support to RIAs and broker-dealers through our subscription legal services. A few people were curious about how it all works and so I thought I’d share a quick video walking you through it. Because legal matters can be confusing enough, you don’t need your service provider to confuse you further. So here’s a little insight and transparency about how legal services work here at My RIA Lawyer. https://lnkd.in/eaRr6-dP #financelaw #financialservices #myrialawyer

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#BarleyReadoftheWeek: This month, FinCEN released updated FAQs regarding the Corporate Transparency Act's Beneficial Ownership Information Reporting Rule, specifically pertaining to entities which are in existence on or after January 1, 2024, but are dissolved prior to their filing deadline. Attorney Charmaine Beth Nyman and Dan Desmond break down the update and explain what businesses need to know in our alert at the link: https://lnkd.in/dkxE9XbM

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Jim Treacy's column Permissible Purpose and Use of Prescreened Solicitations is now in the May/June ABA Risk and Compliance Magazine. FCRA remains a key focus for bank regulators; in this column, Jim focuses on FCRA rules on permissible purpose for obtaining consumer reports, use of prescreened lists for delivering firm offers of credit/insurance to consumers, and managing consumer responses. Read it here: https://lnkd.in/gWWunCYE

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Attention, broker-dealer friends: If you have dually registered financial advisors at your firm, you need to read my and Christopher J. Kelly's piece about FINRA's recent Reg BI enforcement action over account-type recommendations. #finra #enforcement #brokerdealers

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"Balancing the bank's right to terminate contracts with the customer's right to fair treatment demands a nuanced approach." Dhahini Naidu's latest article delves into the legal nuances of bank contract terminations, focusing on fairness and constitutional values in South African contract law. Highlighting landmark cases like Bredenkamp, Beadica, and Survé, it examines the balance of power between banks and customers. Read the full article here: https://lnkd.in/d9qB-Q7J #contractlaw #southafricanlaw #contractterminations

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Shari Leventhal, Of Counsel in S&C’s Financial Services Group, spoke in the American Bankers Association’s webinar “Leveraging Enforcement Actions to Meet Current BSA/AML Regulatory Expectations” on June 18. The discussion provided guidelines for effective BSA/AML and OFAC compliance program development and remediation, and steps banks can take to avoid regulatory problems. Learn more about Shari’s practice: https://lnkd.in/gPJ-QQTk

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The Consumer Financial Protection Bureau (CFPB) has proposed a new rule to classify overdraft fees as extensions of credit, bringing them under the Truth in Lending Act (TILA) regulations. This move aims to significantly reduce overdraft fees charged by financial institutions with over $10 billion in assets, protecting consumers from excessive "junk fees." Discover more insights on this new rule from Chris Rahl and Natalie Gibson, Esquire: https://bit.ly/4d1ekSp #CFPB #OverdraftFees #ConsumerProtection #financialservicesproviders

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