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
This case illustrates the overlapping authority and jurisdiction of the SEC and the CFTC.
Leaving aside the big picture question of the constitutionality of the CFPB structure, the CFPB structure makes for bad public policy. It represents an immense amount of power concentrated in the hands of a single individual, who does not report to any branch of Congress. There is simply no good reason why the CFPB should not be reorganized following the same basic structure as the other independent regulatory agencies, with representation from both political parties on the Commission, and…
The CFPB's promise not to use an allegation of an "abusive" act as a throw-in to another violation is a very positive step, and not just in these limited circumstances. It would be a positive step generally for financial regulators to stop throwing in extra charges as freebies when they find a violation. To take two examples:
FINRA seems to have established a practice of throwing in a violation of ("Standards of Commercial Honor and Principles of Trade") with numerous other more…The treatment of separate accounts is a very significant issue for asset managers and their clients that transact in futures or cleared swaps, including pension plans. If FCMs are not permitted to enter into limited recourse agreements with customers, any entity that uses multiple advisers will be putting itself at material risk in connection with the trades of each of those advisers.
The CFTC has made a bit of a mess of this issue. As noted before, Letter 19-17 is and at odds with…