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
Governor Bowman's comments as to the scope of banking regulator authority have much in common with . They both warn against regulators who want to make the world a better place, whether as to social change or climate change, and rationalize the expansion of their regulatory authority to do so. But these are not tasks within the plain scope of the regulators' statutory missions, and in a world of limited resources, the economy would do better if the regulators concentrated their attention and…
For related commentary, see: .
It is noteworthy when a regulator does not impose a fine in connection with a disciplinary action . Presumably the violation was unintentional. That said, the violation was discovered by FINRA investigation, rather than self-discovery by the firm.
In not imposing any fine, FINRA credited the firm for:
conducting an internal review to identify potentially disadvantaged customers and calculate total remediation, including voluntarily extending the review…FSOC's largely unfettered authority to designate institutions for regulation is one of the worst provisions of Dodd-Frank. (See, with commentary.)
If there are institutions that should be subject to additional regulation, FSOC should go to Congress and specify the activities and the scale of activities that require regulation and the parameters of that regulation. The notion that the regulators can simply use their judgement as to the types of entities that should be regulated…