Every fintech needs a regulatory strategy, and it can be a “bet the company” decision for many fintechs. Being ahead of - or aligning with - policy and regulatory priorities can fuel explosive growth for some companies and products; while others may find challenging regulatory frameworks to be the lynchpin of their growth strategy.
Choosing the right strategy will involve deciding which (if any) licenses to obtain before launching a new product, evaluating if business practices comply with the license requirements, and responding to annual exams. And then, of course, there is the unexpected: changing regulatory environments, investigative inquiries, or sudden business pivots. Our team has advised on it all.
We have deep experience advising clients across a range of highly regulated industries, including loan originators, loan brokers, money transmitters, marketplace lending, mortgage lenders, and real estate brokers. We advise on responding to investigations from local, state and federal agencies, including the FTC, SEC, DOJ, and CFPB.
Every member of our team has served as in-house counsel at a fintech or bank. We deliver actionable advice to our clients, based on their appropriate risk tolerance and business goals.
OCC Bulletin Offers Guidance on Venture Lending
In the wake of the Silicon Valley Bank crisis and other incidents of banking distress last year, new participants continue to enter the venture debt market — resulting in the formation of new banking relationships. Accordingly, the Office of the Comptroller of the Currency (“OCC”) issued Bulletin 2023-34 (the “Bulletin”) to address what it sees as “heightened uncertainty” created by these developments.
California’s New Small Business Commercial Financing Regulations
The goal of S.B. 666 is to protect small business borrowers by restricting the types of fees they may be charged by brokers or providers of certain business loans.3 In this article, we address key issues arising under S.B. 666 for both borrowers and lenders.
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