Chief Legal Architect and a co-founder of Caffrey.AI
Steven Lofchie is the Chief Legal Architect and a co-founder of Caffrey.AI, an AI platform built for law firms, banks, and the financial regulatory industry. He is also a partner at Norton Rose Fulbright, where he advises financial institutions on securities laws, the Commodity Exchange Act, and broker-dealer regulation. Ranked by Chambers USA every year since 2007, he is the author of “Lofchie’s Guide to Broker-Dealer Regulation,” long considered the leading treatise on the subject.
Recent Articles & Comments
Given the prevalence of bad actors that want to create harm, and the varying reasons that motivate them, the SEC should really consider whether forcing firms to centralize activities and information in a single technology (i.e., CAT for trading information and cleared repo through FICC) is prudent, even assuming it brings some benefits.
There are two risks to banks and other custodians on the one hand, and their customers, on the other, in connection with the custodians' holding of crypto-assets.
First, should the custodian become insolvent, the customer would be treated as having loaned the crypto-assets to the custodian (no different than if the customer had actually loaned money to the custodian), in which case the customer would be treated as a general unsecured creditor in the custodian's bankruptcy.…
A few questions for the CFPB to consider:
Assuming that an NSF fee of over $30 is too high for an automatically declined transaction, is "no fee" too low? If "no fee" is too low, does the fee prohibition discourage banks from taking on lower income consumers? Are there any costs inherent to the rejection of the transaction that it would be reasonable for the bank to pass to the consumer?The corrective measures that the bank is required to take as to its AML program are set out by the OCC with a good degree of specificity. Accordingly, it would be prudent for any bank's AML Compliance Officer to review this enforcement action and consider how its AML program matches up with the description in the action.