Category Archive: Finance

Seven State Agreement to License Money Services Businesses

A multi-state licensing agreement (“Compact”), that standardizes certain elements of the licensing process for money services businesses (“MSB”), has been implemented.  MSB include money transmitters, payment service providers, and currency exchangers.  The agreement provides that if one state in the Compact has reviewed certain license requirements such as IT processes, cybersecurity, business plan, background check and compliance […]

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The CFPB and it’s Structure Held Constitutional

There has been litigation and  public concern about the structure of the Consumer Financial Protection Bureau (“CFPB”) in that a single-director model was created rather than multiple directors at other federal agencies.  In the earlier action by PHH the D.C Circuit had held, among other issues, that the single-director status and only the removal of […]

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CFPB Final Rule Prohibiting Class Action Waivers in Arbitration Clauses

On July 10, 2017, the Consumer Financial Protection Bureau (CFPB) issued a final rule prohibiting class action waivers in predispute arbitration clauses contained in covered consumer financial services agreements. The four primary provisions of the final rule are as follows: Under the final rule, a “predispute arbitration agreement” is defined as: “an agreement between a […]

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Compensation of Finders In The Sale Of California Securities

Compensation Practice The “finders” exemption, went into effect on January 1, 2016 at Corporations Code Section 25206.1.     Finders who satisfy the requirements of the exemption can now receive transaction-based compensation on the sale of a security in California. The exemption is available to individuals (not otherwise registered as a broker-dealer or agent) who meet the […]

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Conference Of Bank Supervisors File Complaint Against The OCC Over Fintech Charters

The Conference of State Bank Supervisors (“CSBS”), which represents state chartered banks nationwide, filed suit against the Office of the Comptroller of Currency (“OCC”)  in the US district court of the District of Columbia in April, 2017, regarding  the OCC’s issuance of a new non-bank “fintech charter”. The complaint  alleges that the OCC is over-reaching […]

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Strategic Alliances: Legal Consideration in Financial Services Transactions

Strategic Alliances  are contractual agreements between business entities, or in some cases individuals  to share business assets, including but not limited to intellectual property, licensing, etc.  contribute funds and to some extent share technology and employees  to achieve a mutual financial goal.    These arrangements are well-known in the real estate industry as joint ventures and […]

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