FinReg Focus

In this episode, host Jenny Lee [https://www.reedsmith.com/en/professionals/l/lee-j-h-jennifer], partner at Reed Smith, speaks with guest Jonah Krane [https://www.klaros.com/jonah-crane], partner at Klaros Group, about the hottest topics in fintech regulation, including how regulators can be more innovative when drafting their regulations. They discuss the latest interagency guidance on bank-fintech partnerships, the CFPB's innovation office, open banking and consumer data access, and how the Volcker rule ended up being 1,000 pages. They also cover how a principles-based approach to regulation (e.g., UDAAP) is not light touch, but actually sets a high bar (relative to prescriptive standards). And they delve into the reasons why an outcomes-based approach to consumer finance regulation should prevail, addressing the constitutional, political, or other barriers that may stand in the way.

UK regulators are cracking down on misleading advertising that encourages investment in high-risk products. David Calligan [https://www.reedsmith.com/en/professionals/c/calligan-david] and Tim Dolan [https://www.reedsmith.com/en/professionals/d/dolan-tim] discuss the Financial Conduct Authority’s tough new rules on financial promotions and how they fit in with the new Consumer Duty.

David Calligan [https://www.reedsmith.com/en/professionals/c/calligan-david], Tim Dolan [https://www.reedsmith.com/en/professionals/d/dolan-tim] and Nick Breen [https://www.reedsmith.com/en/professionals/b/breen-nick] discuss social media influencers promoting financial services products and the rules and regulations that apply, both from financial regulators and consumer protection laws. For more information, please visit Reed Smith's Financial Regulatory page [https://www.reedsmith.com/en/capabilities/industries/financial-services/financial-regulatory].

The FCA’s Investment Firms Prudential Regime takes a new approach to liquidity requirements for investment firms. Reed Smith's David Calligan [https://www.reedsmith.com/en/professionals/c/calligan-david] and Karen Butler [https://www.reedsmith.com/en/professionals/b/butler-karen] are joined by Kroll’s Andrew Lowin [https://www.kroll.com/en/our-team/andrew-lowin] to discuss the minimum amount of liquid assets required to be held by investment firms and to help firms understand those requirements, especially as for some it will be the first time they have been subject to the requirement. For more information, please visit Reed Smith's Financial Regulatory page [https://www.reedsmith.com/en/capabilities/industries/financial-services/financial-regulatory].

David Calligan [https://www.reedsmith.com/en/professionals/c/calligan-david], Karen Butler [https://www.reedsmith.com/en/professionals/b/butler-karen] and David Ashmore [https://www.reedsmith.com/en/professionals/a/ashmore-david] discuss the recently published FCA consultation paper on remuneration under the new UK Investment Firms Prudential Regime, and what changes are needed to remuneration policies and employment contracts. They will review the new approach to governance, how firms can determine how the regime applies to them and how to develop and implement processes and policies to address new requirements. For more information, please visit Reed Smith's Financial Regulatory page [https://www.reedsmith.com/en/capabilities/industries/financial-services/financial-regulatory].