With the new presidency and the reelection of Republicans in both houses of congress, there are plenty of changes that are expected to come this year. From increased cybersecurity to less of a focus on disparate impact, waves of change are coming for the financial services sector. Protect your operation from liability and financial obligation with a comprehensive and customized Financial Services Professional Liability Insurance program and read up on the following predictions for 2017’s financial landscape.
The emergence of cybersecurity.
While cyber threats are nothing new, the federal government is scrambling to keep up with the growing risks. Moving forward, it’s likely that banks and financial institutions will have to navigate federal and state regulations for cybersecurity. We’re already seeing implications of these new regulations. In fact, the FDIC, Fed, and OCC recently initiated the process for drafting new cybersecurity regulations for banks with assets exceeding $50 billion. Also in 2016, federal agencies like the Commodity Futures Trading Commission and the Department of Defense issued cybersecurity-related rules, says FICO.
Less federal focus on the disparate act.
Led by the CFPB, federal agencies have aggressively used the disparate impact legal doctrine in the lending arena. The doctrine allows a party to establish discrimination if a practice or policy has a statistically disproportionate “adverse impact” on persons in a protected class. Traditionally, the doctrine was most widely applied in employment and housing, however, in recent years, the doctrine was used more frequently in auto finance and other lending activities subject to the Equal Credit Opportunity Act, states the article. However, with the recent change in priorities and a new Department of Justice leader, this focus is predicted to diminish over the following years.
In our next post, we will discuss the other two main predictions that are thought to reshape the financial landscape in the follow years.
Since 1983, Financial Guaranty Insurance Brokers has distinguished itself as a provider of Professional Liability, Cyber Liability, and Crime insurance products for financial entities, in addition to providing crime insurance and general business insurance products to a number of firms across the United States. To receive timely, personalized service from a knowledgeable and experienced staff, call us today at (877) 485-4413 to speak with one of our professionals.