Financial

August 24, 2020

Construction sites and other workplaces need to comply with regulations and manage health and safety risks, while attempting to increase production, as we move into less restrictive lockdown levels. The announcement of South Africa’s move to lockdown Level 2 with effect from 18 August 2020 is being celebrated by almost all economic sectors. Despite this, the Level 2 regulations emphasise that this is not the time for complacency. We must remain vigilant. In addition to…

Consumer Financial Services Law Monitor

Colorado Attorney General Announces Landmark Settlement in True Lender Litigation Actions

By Tim J. St. George, David N. Anthony, James Stevens, Rick Eckman, Paul Kim & Gregory Nowak

August 24, 2020

In January 2017, the Attorney General of Colorado filed two lawsuits against Marlette Funding LLC and Avant of Colorado LLC. Among other things, the lawsuits claimed that these two companies, as the online platforms for loans made to Colorado citizens, violated Colorado’s usury caps. In November 2018, the Attorney General amended the complaint to include related entities and various securitization trusts. In June 2020, the court ruled that even if the banks were the “true…

Securities Compliance Sentinel

TRANSACTION-BASED COMPENSATION REQUIRES REGISTRATION . . . PERIOD

By Ernest Badway

August 24, 2020

FINRA’s National Adjudicatory Counsel (“NAC”), recently, affirmed a disciplinary panel decision significantly sanctioning a broker-dealer for paying unregistered persons and entities. See https://www.finra.org/sites/default/files/2020-07/NAC_2014042606902_Silver-Leaf_062920.pdf. FINRA alleged, among other things, that a broker-dealer paid transaction-based compensation to “unregistered finders,” and non-registered entities owned by its registered persons. Ultimately, the NAC agreed that, over a 3 year period, the broker-dealer paid and/or shared certain transaction-based compensation with unregistered finders and entities affiliated with registered persons, rather than…

Consumer Financial Services Law Monitor

Troutman Pepper Weekly Consumer Financial Services COVID-19 Newsletter

By Ethan G. Ostroff, Elizabeth Briones, Ronald I. Raether, Jr., Dan Stillman, Jed Komisin & Alan D. Wingfield

August 24, 2020

Like most industries today, Consumer Finance Services businesses are being significantly impacted by the novel coronavirus (COVID-19). Troutman Pepper has developed a dedicated COVID-19 Resource Center to guide clients through this unprecedented global health challenge. We regularly update this site with COVID-19 news and developments, recommendations from leading health organizations, and tools that businesses can use free of charge. To help you keep abreast of relevant activities, below is a breakdown of some of the…

Litigation Finance Journal

Litigation Capital Management (LCM) announces its third corporate portfolio transaction

By John Freund

August 24, 2020

Litigation Capital Management Limited, a global provider of disputes funding, publicly listed on the London Stock Exchange’s AIM market, is pleased to announce it has executed an agreement to finance a corporate portfolio transaction to provide a significant finance facility to a subsidiary of a global building and infrastructure contractor to fund a portfolio of its construction claims. The transaction, which originated through LCM’s strategic alliance with Norton Rose Fulbright and involved members of LCM’s…

Consumer Finance Monitor

Dept. of Education implements Presidential memorandum continuing federal student loan relief during pandemic

By John L. Culhane, Jr.

August 24, 2020

At the end of last week, the Department of Education announced that Education Secretary Betsy DeVos has directed Federal Student Aid (FSA) to extend until December 31, 2020 the relief that was provided to federal student loan borrowers by the CARES Act. The CARES Act suspended loan payments on federal student loans and temporarily reduced interest rates to zero until September 30, 2020. Secretary DeVos was directed to take action to extend such relief pursuant …

MoFo ReEnforcement: The Enforcement Blog

Dropping Anchor in the (Safe) Harbor: Colorado “True Lender” Litigation Settles

By Obrea Poindexter, Nancy Thomas & Crystal Kaldjob

August 24, 2020

Ending years of litigation, the Colorado Attorney General and the Administrator of the Colorado Uniform Consumer Credit Code (“Administrator”) announced a settlement with marketplace lenders Avant of Colorado, LLC and Marlette Funding, LLC (together, the “Non-Bank Partners”), and their bank partners WebBank and Cross River Bank (together, the “Banks”). Under the terms of the settlement, the marketplace lending programs will be permissible under Colorado law, provided that the programs satisfy certain safe harbor conditions laid out in…

Financial services: Regulation tomorrow

The Sustainable Finance Regulation Video Series

By Hannah McAslan (UK) & Imogen Garner (UK)

August 24, 2020

Volume 1: Foreign Banks Operating in the UK Over the next few months, Norton Rose Fulbright’s financial services conduct team will be releasing a series of videos focussing on sustainable finance regulation issues affecting financial services firms. In volume 1 of the series, Hannah McAslan discusses the sustainable finance regulation issues impacting on foreign banks operating in the UK.…

LIBOR Transition Blog

ARRC Updates Recommended Best Practices in Anticipation of ISDA’s IBOR Fallback Protocol

By Jennifer J. Kafcas, Donald A. Ensing, Susan Rodriguez, Lauren J. Blaber & Harry Poland

August 24, 2020

On August 19, 2020, the ARRC updated its recommended Best Practices for the LIBOR transition in anticipation of the imminent publication of ISDA’s IBOR Fallback Protocol (the “Protocol”) (which we discussed in our earlier blog post, available here). These updates follow the July 22, 2020 letter from ISDA (the “Letter”) (available here), in which ISDA confirmed that market participants will be able to sign up to the Protocol “in escrow”. This will consist…

Financial services: Regulation tomorrow

BIS publishes speech on reg tech and sup tech

By Arup Sen & Albert Weatherill (UK)

August 24, 2020

On 21 August 2020, the Bank for International Settlements (BIS) published a speech by Benoît Cœuré, Head of the BIS Innovation Hub, which focussed on the main challenges to the development of reg tech and sup tech in the financial services sector. Cœuré begins by describing the differences between reg and sup tech – namely that the former is used by financial institutions to assist with regulatory compliance whereas the latter is used by supervisory…

Financial

Managing construction sites and other workplaces in the new normal

Colorado Attorney General Announces Landmark Settlement in True Lender Litigation Actions

TRANSACTION-BASED COMPENSATION REQUIRES REGISTRATION . . . PERIOD

Troutman Pepper Weekly Consumer Financial Services COVID-19 Newsletter

Litigation Capital Management (LCM) announces its third corporate portfolio transaction

Dept. of Education implements Presidential memorandum continuing federal student loan relief during pandemic

Dropping Anchor in the (Safe) Harbor: Colorado “True Lender” Litigation Settles

The Sustainable Finance Regulation Video Series

ARRC Updates Recommended Best Practices in Anticipation of ISDA’s IBOR Fallback Protocol

BIS publishes speech on reg tech and sup tech

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