The move becomes effective on October 1, 2023, with the Supreme Court soon to decide on the agency’s rule-writing authority. By Barrie VanBrackle, Marifiel Gonzalez, and Deric Behar On February 1, 2023, the Consumer Financial Protection Bureau (CFPB) proposed a rule (the Proposal) to amend Regulation Z, which implements the Truth in Lending Act (the Act) … Continue Reading
The Act aims to modernize and streamline state regulation of money transmitters while promoting innovation and consumer protection. By Parag Patel, Mik Bushinski, and Deric Behar More than a dozen US states have enacted the Money Transmission Modernization Act (MTMA) in whole or in part, while several others have introduced bills to implement some or all … Continue Reading
New laws implement regulatory standards and licensing requirements for fintechs seeking to improve employee access to wages. By Parag Patel, Mik Bushinski, and Deric Behar On June 13, 2023, Nevada enacted a law that regulates earned wage access (EWA) services provided to state residents. Missouri followed by enacting an EWA law on July 7, 2023 … Continue Reading
Consumers and businesses stand to benefit from rapid access to funds at any time when routed through participating financial institutions. By Parag Patel, Barrie VanBrackle, Mik Bushinski, and Deric Behar On July 20, 2023, the Federal Reserve announced the long-awaited launch of its real-time payment service, FedNow. The new service enables consumers and businesses to send … Continue Reading
Latham’s payments specialists examine the proposed new EU payments package. By Christian McDermott, Brett Carr, and Amy Smyth The European Commission recently published its proposals for a new EU payments regime, which comprises the Payment Services Directive 3 (PSD3) and the Payment Services Regulation. During this one-hour webcast, we outline the purpose and contents of … Continue Reading
Consumers and service providers should take note of some of the enhanced risks upon an e-money institution’s insolvency. By Hongbei Li Technology is rapidly changing the way customers and businesses interact with financial systems. Fintech companies are a driving force behind the disruption of traditional banking and payment services, with regulatory innovation close behind. In … Continue Reading
The guidance is part of the rapidly evolving rules on anti-money laundering and aims to promote UAE as a jurisdiction compliant with best practices. By Brian Meenagh, Ksenia Koroleva, and Matthew Rodwell On August 1, 2022, the UAE Central Bank (CBUAE) issued the Guidance for Licensed Financial Institutions on the Risks Relating to Payments.[1] The … Continue Reading
Latham lawyers explore the latest insurtech trends and regulatory developments impacting the sector in Europe and Asia. Disruptive technology is revolutionizing insurance, enabling insurers to achieve growth by leveraging big data and creating innovative solutions to enhance customers’ digital experience. We are pleased to launch Insurtech Insights, a series of webcasts to discuss the most … Continue Reading
The report, from UK Finance, The Payments Association, and Latham & Watkins, urges fresh thinking about regulating payments in the growing digital economy. By Stuart Davis and Brett Carr UK Finance, The Payments Association, and Latham & Watkins have published UK Payments Regulation Review: Making sense of where to go now, a new report examining regulation … Continue Reading
In a long-awaited paper, the FRB continues its exploratory approach and emphasizes the need for congressional support. By Alan W. Avery, Pia Naib, and Deric Behar On January 20, 2022, the Board of Governors of the Federal Reserve System (FRB) published its long-awaited discussion paper (the Paper) on the potential benefits and risks of issuing … Continue Reading
The guidelines set out the MAS’ expectation that digital payment token service providers should not promote their services to the general public in Singapore. By Simon Hawkins, Farhana Sharmeen, and Tan Gen Huong On 17 January 2022, the Monetary Authority of Singapore (the MAS) issued new guidelines (the Guidelines) setting out restrictions on the promotion … Continue Reading
The French Data Protection Authority’s white paper discusses how companies can comply with data privacy and security obligations. By Christian F. McDermott, Myria Saarinen, Calum Docherty, Charlotte Guerin, Jiou (Alex) Park, and Amy Smyth The use of card, contactless, and innovative digital payment solutions has significantly increased in recent years, fueled by the immediate impacts … Continue Reading
Online retailers storing credit card data for the sole purpose of facilitating further purchases will likely need to obtain consumer consent. By Christian F. McDermott, Calum Docherty, and Victoria Wan Online shopping has boomed in recent years. In 2020, the European statistics agency Eurostat estimated that 7 out of 10 internet users made online purchases … Continue Reading
A report from the Taskforce on Innovation, Growth and Regulatory Reform provides recommendations for how the UK can “re-imagine” its approach to regulation post-Brexit. By Rob Moulton, Stuart Davis, and Charlotte Collins On 16 June 2021, the Taskforce on Innovation, Growth and Regulatory Reform (the Taskforce) published a report (the Report) providing recommendations for how … Continue Reading
The paper identifies potential gaps in protections for consumers, with a focus on consumer-to-business payments via the Faster Payments System. By Christian F. McDermott, Claudia Sousa, and Alain Traill In November, Pay.UK, the retail payments authority, released a summary paper exploring the consumer protection landscape relating to disputed retail payments. The paper, titled “Consumer Protections … Continue Reading
As contactless transactions boom, EU regulators publish draft guidelines on the interplay between the GDPR and PSD2. By Fiona M. Maclean, Christian F. McDermott, Calum Docherty, and Amy Smyth Last year, more than half of all payments in the UK were made by card and contactless methods, while cash made up less than a quarter … Continue Reading
A new report explores the advantages, impacts, and approaches the Eurosystem is considering as it contemplates a digital currency. By Max von Cube In October 2020, the European Central Bank (ECB) published a Report on a Digital Euro (the Report). The Report sets out the main findings of a task force initiated in early 2020 … Continue Reading
Elisabeth Stheeman of the Financial Policy Committee outlined the new frameworks for building operational resilience against cyber risks and protection of payment chains. By Brett Carr and Stuart Davis On 9 September 2020, Elisabeth Stheeman, an External Member of the Financial Policy Committee (FPC) for the Bank of England (BoE) delivered a speech entitled, “The … Continue Reading
Andrew Bailey outlined what payments market participants can expect from regulators seeking to address financial stability risk in the world of payments, including as part of the rise and adoption of global stablecoins. By Brett Carr and Stuart Davis On 3 September 2020, the Governor of the Bank of England (BoE) Andrew Bailey delivered a … Continue Reading
The updates are part of SAMA’s efforts to promote an innovation-based financial technology ecosystem in the KSA. By Salman Al-Sudairi, Brian A. Meenagh, and Homam Khoshaim Last month, the Saudi Arabian Monetary Authority (SAMA) issued an update to the recently implemented Payment Services Provider Regulations (PSPR), which was introduced in January 2020 to regulate Payment … Continue Reading
A new Payments Charter could enable entities to engage in payments-related activities on a nationwide basis, rather than by state. By Alan W. Avery, Todd Beauchamp, Pia Naib, Loyal T. Horsley, and Charles Weinstein The US Office of the Comptroller of the Currency’s (OCC) newly appointed Acting Comptroller, Brian P. Brooks, is already advancing the … Continue Reading
The additional temporary guidance aims to strengthen the arrangements for safeguarding customers’ funds and firms’ prudential risk management in light of the impact of COVID-19. By Stuart Davis, Brett Carr, and Anna Lewis-Martinez On 9 July 2020, the FCA published its finalised guidance on safeguarding customers’ funds during the COVID-19 crisis. The finalised guidance applies … Continue Reading
MAS confirms regulatory approach for derivative contracts on payment tokens. By Farhana Sharmeen and Marc Jia Renn Tan On 15 May 2020, the Monetary Authority of Singapore (the MAS) issued its response to feedback about its proposed regulatory approach for derivative contracts that reference payment tokens as underlying assets (Payment Token Derivatives), confirming that it … Continue Reading
The report encourages the G20 to consider a broad set of supervisory principles when evaluating global stablecoin arrangements. By Todd Beauchamp, Stuart Davis, Christian F. McDermott, Yvette D. Valdez, Stephen P. Wink, Simon Hawkins, and Deric Behar On April 14, 2020, the G20’s Financial Stability Board (FSB) published a consultation on the regulation, supervision, and … Continue Reading
