In a previous article, we discussed some of the regulatory predictions that are believed to shape the financial landscape this coming year. With the new administration, many changes are likely on the way. Therefore, in addition to protecting your financial institution with a Financial Services Professional Liability Insurance program, take the following predictions into account to stay abreast of the coming change in climate and regulations.
The Congressional Review Act will come into play.
This provision was adopted in 1996 as part of the Small Business Regulatory Enforcement Fairness Act. Under the CRA, before a new regulation takes effect, Congress can take action (through a simple majority vote) on a joint resolution disapproving of the rule. If approved in both houses, the resolution is sent to the President for signature or veto. This means that the future fate of controversial rulemaking, such as the CFPB’s arbitration and small dollar lending proposals that began under a Democratic administration, will be subject to the Republican Congress’s potential use of the CRA, says FICO. The content of future regulations is unknown; however, they must be considered as federal agencies issue final rules.
In accordance with the Telephone Consumer Protection Act (TCPA), banks have struggled to find the balance between giving their customers immediate alerts on their mobile phones and straddling the lines of legality. However, as a new Federal Communications Commission officer took over at the end of January, new regulations are anticipated to be set forth.
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.