Fintech Company Avoids Murky Regulatory Landscape By Being The First U.S. Fintech Company To Acquire A Regulated Bank

For the first time, a U.S. fintech company is acquiring a regulated U.S. bank, which will give it access to a stable and cheaper source of funding – as well as a national bank charter.

On February 18th, LendingClub, one of the largest providers of personal loans in the U.S., announced that it will pay $185 million in cash and stock to acquire Radius Bancorp, an online bank with about $1.4 billion in assets. The […]

By | August 19th, 2021 ||

FFIEC Issues Updated Guidance On Authentication And Access To Financial Institution Services And Systems

On August 11, 2021, the Federal Financial Institutions Examination Council (FFIEC) issued new guidance, titled “Authentication and Access to Financial Institution Services and Systems” (“Guidance”), which provides examples of effective authentication and access risk management principles and practices for financial institutions. The principles and practices relate to access to digital banking services and information systems by customers (consumer and business), employees, third parties, apps, and devices.

The Guidance from the FFIEC, whose members include representatives from the federal […]

By | August 19th, 2021 ||

SEC Increases Registered Investment Adviser Performance Compensation Net-Worth And Assets-Under-Management Tests

Key Points

Effective as of August 16, the dollar amount tests specified in the definition of “Qualified Client” in Rule 205-3 under the Investment Advisers Act of 1940 (Advisers Act) will increase for the net-worth threshold from $2.1 million to $2.2 million and for the required assets-under-management threshold from $1 million to $1.1 million. As a result, federally registered investment advisers (RIAs) should consider taking the following actions to with respect to their documentation:

[…]

By | August 16th, 2021 ||