Financial Services Regulatory & Compliance

Fractional Financial Services Regulatory Counsel

In a dynamic and highly regulated financial services business environment, maintaining compliance with legal, regulatory, and ethical standards is paramount. However, not all organizations have the resources or need for a full-time Chief Compliance Officer (CCO). Clark Hill’s Financial Services Regulatory Team provides our client with top-tier compliance expertise and oversight without the cost and commitment of a full-time executive.

Fractional Financial Services Regulatory Management

• Ensure Compliance: Maintain adherence to relevant laws, regulations, and internal policies.
• Risk Management: Identify, assess, and mitigate compliance risks.
• Ethical Standards: Promote a culture of ethics and integrity within the organization.
• 3^rd Party Oversight: Ensure that your vendor partners are complying with your policies, procedures and compliance expectations.
• Cost Efficiency: Provide knowledgeable compliance leadership at a fraction of the cost of a full-time CCO.

Our Services

• Regulatory Compliance:
  • Monitoring and interpreting relevant laws and regulations.
  • Developing and implementing compliance programs and policies.
  • Ensuring compliance with industry standards and regulatory requirements.
• Risk Assessment and Management:
  • Conducting regular risk assessments and audits both internally and externally with vendor partners.
  • Developing risk management strategies.
  • Implementing controls to mitigate identified risks.
• Training and Education:
  • Designing and delivering compliance training programs for employees.
  • Raising awareness about compliance issues and best practices.
• Ethics and Corporate Governance:
  • Promoting ethical behavior and decision-making.
  • Advising on corporate governance issues and board practices.
  • Ensuring compliance with internal codes of conduct.
• Reporting and Communication:
  • Preparing compliance reports for senior management and the board.
  • Serving as a liaison with regulatory bodies and external auditors.
  • Facilitating internal communication on compliance matters.

 

Banking as a Service (BaaS) Consulting & Advisory

Our unique offering is designed to guide financial institutions and fintech companies through the complexities of implementing and managing BaaS solutions. Our team of experts offers strategic insights, regulatory guidance, and tailored solutions to help you seamlessly integrate BaaS platforms, enhance customer experiences, and drive innovation. Whether you’re launching a new BaaS product or optimizing an existing one, we provide the expertise you need to navigate the evolving financial landscape with confidence.

Our Services

• Regulatory Compliance Advisory:

• • Analyze and interpret relevant financial regulations to ensure your BaaS solutions comply with federal and state laws.
  • Develop and implement comprehensive compliance programs tailored to your BaaS offerings.

• Licensing & Regulatory Approval:

• • Guide through the process of obtaining necessary licenses and regulatory approvals for BaaS operations.
  • Liaise with regulatory bodies to streamline approval processes and address any compliance issues.

• Risk Assessment & Management:

• • Conduct thorough risk assessments to identify and mitigate potential legal and regulatory risks.
  • Develop and maintain risk management policies that align with regulatory expectations.

• Data Privacy & Security Compliance:

• • Advise on compliance with data protection laws, including GLBA, CCPA, and other privacy regulations.
  • Ensure that BaaS platforms have robust data security measures in place to protect customer information.

• Contract Review & Drafting:

• • Review, draft, and negotiate contracts with BaaS partners, vendors, and service providers to ensure regulatory compliance.
  • Ensure contracts include appropriate provisions for data security, compliance obligations, and risk allocation.

• Regulatory Change Management:

• • Monitor and interpret regulatory changes affecting BaaS operations.
  • Provide ongoing advisory on adapting to new regulations and maintaining compliance.

• BSA/AML Compliance:

• • Design and implement Anti-Money Laundering (AML) and Know Your Customer (KYC) programs for BaaS services.
  • Conduct periodic reviews and audits of BSA/AML processes to ensure compliance with regulatory standards.

• Dispute Resolution & Regulatory Defense:

• • Represent your organization in regulatory investigations, enforcement actions, and disputes.
  • Provide legal defense and strategic advice in response to regulatory inquiries or actions.

 

Financial Services Innovation (FinTech), Product Consulting & Acquisition

We specialize in providing comprehensive legal services tailored to the financial technology (fintech) sector. We offer expert counsel on a range of issues related to the development, launch, and maintenance of innovative fintech products. Our team is adept at navigating the complex regulatory landscape that governs fintech, ensuring that your products are fully compliant with current regulations and aligned with industry standards.

Our Services

• FinTech Product Innovation Advisory:

• • Provide legal guidance on the development and structuring of groundbreaking fintech products, ensuring innovation aligns with legal frameworks.
  • Advise on the strategic launch of disruptive financial technologies, considering market and regulatory impacts.

• Regulatory Sandbox Navigation:

• • Assist fintech companies in participating in regulatory sandboxes, facilitating the testing of innovative products under a controlled regulatory environment.
  • Provide ongoing legal support throughout the sandbox process to ensure compliance and successful product scaling.

• Market Entry Strategy:

• • Provide legal insights for entering new markets with fintech products, considering local regulatory landscapes and business environments.
  • Assist in adapting products and business models to meet the legal requirements of target markets.

• Consumer Protection & UX Compliance:

• • Advise on designing user experiences (UX) that comply with consumer protection laws, ensuring transparency, fairness, and security.
  • Review and optimize terms of service, privacy policies, and other consumer-facing legal documents.

• Blockchain & Cryptocurrency Regulation:

• • Offer specialized legal advice on blockchain technology, cryptocurrency, and digital assets.
  • Ensure compliance with evolving regulations and provide strategic counsel for crypto-related ventures.

 

Compliance Management System (CMS) Risk Assessment and Due Diligence

Our experienced team will ensure that your CMS meets all statutory and regulatory benchmarks and help you build, revise, or restructure your Compliance Management System.

Our Services

• Corporate Governance and Board Management Assessment
  • Documenting your board and management oversight protocol or corporate governance structure.
• Regulatory Compliance Advisory
  • Develop and review “battle tested” policies and procedures or training materials that meet the expectations “formalized compliance program.”
• Trend and Root Cause Analysis
  • Review complaint tracking, management, and remediation protocols through the lens of former ARM and Banking General Counsels.

 

Regulatory Supervision & Investigation Readiness, Preparedness & Support

Contact our team if your company is a target for regulatory supervision and examination by the CFPB, prudential or state regulators. We are here to help!

 Our Services

• Supervision Preparedness
  • Pre-Audit Risk Assessments
  • Audit Preparation and Response
  • Compliance Program Reviews
• Real-Time Examination Support
• Representation During Examination
• Post Examination Remediation
• Investigations or Enforcement Actions
  • Response and Document Production
  • Engagement with Remediation Planning
  • Consent Order Negotiation
  • Enforcement Defense

 

Revenue Recovery Compliance Support

Our team serves collection agencies and service providers and is comprised of thought leaders from the ARM industry, and we are proud members of ACA International, the National Creditors Bar Association, and the Consumer Relations Consortium.

Our Services

• FDCPA/TCPA/FCRA Guidance
• AI Innovation Analysis (Artificial voice, analytics, chatbots)
• Regulatory Response to CFPB and State Regulators & Audit Representation
• Policy & Procedure Drafting
• Licensing Assistance and Advice
• Debt Sale/Purchase Contracting
• M&A Due Diligence reviews unique to ARM industry
• Service Provider Monitoring and Oversight
• Payment Portal and EFTA Compliance Reviews
• Annual Correspondence (Letter/Text/Email) Reviews
• Insurance and Bonding Evaluations

 

Contact the Financial Services Regulatory Team at finreg@clarkhill.com for more information