Financial Services Regulations

One word – experience – sums up why some of the biggest financial institutions in the United States turn to Holland & Knight's Financial Services Regulatory Team. Team members include former regulators with the Consumer Financial Protection Bureau (CFPB), Federal Deposit Insurance Corporation and several state regulators. Our deep experience with the laws and regulations that govern financial institutions and financial services companies helps us keep our clients out of trouble. When problems do arise, we have the contacts and deep experience – including litigating all the way through hearings or trials, if necessary – to protect our clients' interests.

Our team includes lawyers throughout the country, including New York, Massachusetts, Washington, D.C., Florida, Texas, California, Colorado, Illinois, Tennessee and the mid-Atlantic states.

The team is distinguished by the scope of services it provides as well as its geographic reach. Financial services increasingly stretch not only across state lines but also national boundaries. Our attorneys have guided clients through the regulatory regimes of more than 100 jurisdictions worldwide, including the European Union and nearly every nation in Latin America. Our Cuba Action Team closely monitors developments in that nation and is poised to guide clients in offering financial services in that market if those opportunities become available.

The team regularly interacts with various state and federal regulators, including the Board of Governors of the Federal Reserve System (FRB), the U.S. Department of the Treasury's Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), Office of Foreign Assets Control (OFAC), Consumer Financial Protection Bureau (CFPB), Federal Trade Commission (FTC), U.S. Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA), U.S. Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA), as well as many state banking and financial services regulators and attorneys general.

We Handle All Aspects of Your Regulatory Needs

Holland & Knight's Financial Services Regulatory Team provides advice and counsel to financial services clients in a multitude of ways, including:

• performing multistate surveys of state laws and regulations regarding specific issues
• structuring new products and services to maximize client goals while minimizing compliance burdens and risks
• proactively and collaboratively engaging federal and state regulatory agencies when dealing with complex issues
• reviewing and revising document packages regarding new and existing financial services products and services for compliance with federal and applicable state laws
• performing due diligence compliance reviews on loans and loan pools
• developing and/or revising financial institutions' policies and procedures for compliance with applicable laws
• Visa, MasterCard, and other credit and debit card laws and systems
• drafting opinions and memoranda addressing specific compliance issues raised by our clients
• conducting mock audits of client operations and/or loan files
• conducting self-testing of client operations under privilege
• providing advice to clients in dealing with state and federal examination and enforcement issues
• assessing compliance risks for potential buyers of – or investors in –financial services companies
• reviewing SEC filings for bank holding companies and banks
• representing federal and state-chartered banks in merger transactions before the Federal Reserve, OCC, FDIC and state bank regulators
• developing innovative capital instruments and representing financially distressed financial institutions before their federal and state regulators
• advising cryptocurrency companies in developing business plans and advocating before state regulators to avoid regulation under state money transmission licensure laws
• advising clients on compliance with mortgage lending and servicing regulations
• advising banks on compliance with federal regulators' guidelines on third-party/vendor relationships, including the development of vendor management policies, contracting issues and ongoing monitoring obligations
• auto finance laws impacting disclosure, licensing and product features
• providing general consultation and advice on the Bank Secrecy Act (BSA), anti-money laundering (AML) compliance, and OFAC laws and regulations
• assisting in the development of BSA/AML/OFAC compliance programs, including policies and procedures and systems
• student loan disclosure and enforcement issues
• assisting in respect to BSA/AML/OFAC examinations and responses to regulators
• representing financial institutions in informal and formal regulatory enforcement actions, such as Memorandums of Understanding (MOU) and Cease and Desist Orders
• negotiating, drafting and preparing AML, anti-corruption and OFAC-related representations, warranties and covenants in loan documentation (including loan syndication documentation)
• handling a variety of insurance regulatory compliance and investigation issues across the country
• providing general, functional and targeted training to financial institution employees, compliance staff, management and directors
• providing defense for civil and criminal forfeiture actions and money laundering criminal prosecutions before administrative or judicial bodies
• advising on the legal, regulatory and compliance implications of broker and dealer activities, including legal and compliance counseling related to SEC and FINRA rules
• advising broker-dealers with respect to regulatory inquiries and enforcement matters before FINRA and the SEC, including Wells submissions

In addition, we have:

• helped a large telecommunications company develop and implement a nationwide financing program for the sale of its devices to consumers and small businesses
• advised a regional bank in connection with the design and launch of an online consumer loan product
• advised a regional bank in connection with the bank's sale of more than $400 million of restructured mortgage loans

CFPB

Attorneys on our team have resolved matters before all federal and state financial enforcement agencies, including the CFPB. Although the CFPB has been in flux, other players such as state attorneys general continue to pose formidable regulatory hurdles, and our attorneys frequently assist clients with compliance issues. Like all regulatory agencies, the CFPB sees priorities change with each new administration, and our lawyers are the eyes and ears at these agencies for our clients, alerting them to opportunities and challenges that develop as regulatory policies shift.

Financial Services Litigation

Our lawyers represent national and multinational financial services companies in complex, bet-the-company and putative class action lawsuits, as well as in individual lawsuits initiated by consumers and administrative or court enforcement proceedings brought by government agencies, such as the CFPB, SEC, FINRA, FTC and the U.S. Department of Justice (DOJ). Our team works closely with more than 70 attorneys on Holland & Knight's Financial Services Litigation Team, which includes former federal and state prosecutors and counsel in financial services regulatory agencies. While we do not shy away from aggressively representing clients in litigation, our focus is always on finding the most efficient way for our clients to achieve their business objectives and manage risks.

For example, we:

• won a summary judgment for a mortgage lender in claims related to negative amortization loans
• won a dismissal of claims for a national bank accused of the forced placement of insurance
• obtained dismissal of a suit against a debt collector alleging violation of the Fair Debt Collection Practices Act

At Your Side in Investigations

We guide financial services companies through investigations by the CFPB, FTC, Treasury Department, SEC, OCC, DOJ and related state agencies with the goals of fast resolution and minimal penalties. Members of our team have experience as in-house counsel to financial services regulatory agencies, and that familiarity lends us insight into the investigation and enforcement process. One of our attorneys has successfully defended companies and individuals in more than 50 government investigations, with many of those matters closed.

The practice frequently negotiates outcomes and may mitigate penalties through such compromise protocols as memorandums of understanding. Our attorneys help clients maneuver successfully through investigations focusing on allegations of financial crimes such as money laundering, bribery, violations of rules on the promotion of financial products, insider trading, corporate governance and individual conduct of malfeasance. We also supervise and coordinate due diligence, including look-back and forensic reviews.

The following are representative of the hundreds of investigation matters our attorneys handle for clients every year:

• defended multiple companies, including banks, debt collection companies and others, in CFPB investigations that subsequently were closed
• defended a payments processor and debt collector in an investigation by the New York City Department of Consumer Affairs
• represented private equity investors in defending against bank regulatory enforcement actions related to the failure to file notices of change in control before acquiring controlling interests in depository institutions or bank holding companies
• represented a former senior executive of a major bank in defense of a federal regulatory enforcement action involving the OCC, resulting in the OCC clearing the client of all charges
• represented a nonbank mortgage lender in a HUD investigation based on allegations of disparate impact discrimination
• defended a major debt collection company in a CFPB investigation involving allegations of deceptive, unfair and abusive business practices
• defended mortgage lenders in separate FTC investigations relating to their submission of data required by the Home Mortgage Disclosure Act (HMDA)

Bank Secrecy Act, Anti-Money Laundering and the OFAC

Our team has significant experience advising financial institutions with the complex rules and regulations of the OFAC, as well as laws such as the Money Laundering Control Act, the Foreign Corrupt Practices Act and the Bank Secrecy Act. Companies have asked us to advise them on establishing AML compliance programs, customer identification protocols and other customer due diligence requirements, as well as to offer legal opinions and compliance assessments.

Our attorneys are well-versed in AML, include several who frequently speak at the Florida International Bankers Association's annual Anti-Money Laundering Compliance Conference, the ABA/ABA Money Laundering Enforcement Conference in Washington, D.C., and the AML & Financial Crime Conference – Asia Pacific in Singapore. A number of our attorneys are respected internationally for their knowledge of blockchain technology, and have advised financial services and other companies on compliance in this relatively uncharted area of currency innovation where states and the federal government sometimes have conflicting regulatory requirements.

We provide advice to directors and officers regarding their responsibilities and liability exposure under the Bank Secrecy Act, OFAC and the Money Laundering Control Act. We also conduct AML assessments. Reports generated by these investigations may be shielded by attorney-client privilege and sometimes can be used to self-report, enabling a company to avoid potentially harsher penalties from regulatory authorities.

Privacy and Data Security

The confidentiality and security of consumer financial information has never been as important as it is today, from the perspective of both compliance and reputation. The Financial Services Regulatory Team works closely with Holland & Knight's Data Strategy, Security & Privacy to ensure compliance with the various laws and regulations governing the assembly, storage and dissemination of consumer financial information. These include the privacy and data security provisions in the Gramm-Leach-Bliley Act and its implementing regulations, the FTC's Safeguards Rule, state privacy laws, state data breach notification laws, state cybersecurity laws and regulations, and the provisions of the Fair Credit Reporting Act governing the purposes for which consumer reports may be requested or provided as well as the integrity of the data that goes into those reports.

Payments and Payment Technology

Continually increasing payment volumes, the advent of new payment technologies and infrastructure and continued change in consumer spending habits have seen the payments ecosystem grow exponentially in recent years. This has fueled a raft of new providers, increased mergers and acquisitions activity and expanded payments-related regulation globally. The Financial Services Regulatory Team works with Holland & Knight's Payments and Payment Technology Team to help advise clients on a wide variety of issues related to traditional payment products, as well as emerging and evolving payment technologies while offering a wealth of experience across practices and markets to implement innovative and tailored solutions for businesses.

Insurance Regulatory

In today's climate of deregulation, globalization and natural disasters, complex legal challenges for insurers and insureds are on the rise. Addressing these legal challenges, establishing risk assessment and avoidance strategies, and pursuing potential litigation when necessary requires the knowledge and experience of skilled legal professionals. Our team works with Holland & Knight attorneys who are well versed in insurance regulatory, fraud and recovery, and litigation matters to help clients maximize their insurance coverage and protect their businesses.

Artificial Intelligence

Through emerging artificial intelligence (AI) capabilities, companies are able to accelerate innovation, streamline operations and expand their businesses. In combination with Holland & Knight attorneys who have a comprehensive grasp of AI technologies and the evolving regulatory environment, the Financial Services Regulatory Team helps clients use AI to their advantage today while simultaneously preparing for the future.

Our People

A differentiator for Holland & Knight's Financial Services Regulatory Team is the length and scope of our lawyers' experience. Chambers ranks the co-chair of our team as a "senior statesperson." Our other co-chair has significant experience with matters involving BSA/AML/OFAC and represents FIBA on the U.S. Treasury Department's Bank Secrecy Act Advisory Group (BSAAG). One of our attorneys is the former deputy commissioner of the New Jersey Department of Banking, the former editor of Pratt's Mortgage Compliance Letter and, along with a second member of our team, has been inducted as a Fellow in the American College of Consumer Financial Lawyers. We also have former in-house general counsels.

Our roster also includes:

• a former director of the FTC's Southeast Regional office who supervised many of the enforcement, investigative, litigation and outreach activities of the Competition and Consumer Protection bureaus of the agency
• a thought leader on blockchain and distributed ledger technology and co-author of the book, The Blockchain: A Guide for Legal and Business Professionals
• a former staff attorney in the Enforcement Division of the SEC's New York Regional Office
• a former DOJ staff attorney who served as counsel to the Senate Judiciary Committee

Guidance You Can Trust

The combination of our thorough knowledge, our extensive experience and our sincere commitment to provide responsive service is why clients entrust our Financial Services Team to handle their legal needs. These attributes are also the reason why members of our team have been recognized among the top legal professionals in the country by leading publications, including:

Chambers USA – America's Leading Lawyers for Business recognized members of the following Holland & Knight practices as leaders in their fields:

• Banking & Finance: Mainly Regulatory – Pennsylvania
• Insurance: Regulatory – Texas
• Public Finance, Regulatory and Transactional – Florida

Best Lawyers in America recognized members of the following Holland & Knight practices as leaders in their fields:

• Financial Services Regulation Law