RegFi Podcast

In our latest look at the CFPB’s expanding supervisory authority of fintechs and other non-bank financial service providers, RegFi cohosts Jerry Buckley and Sasha Leonhardt welcome fellow Orrick partner — and former deputy general counsel for the CFPB — John Coleman. John shares his insights on recent developments, including the Bureau’s public announcement of its intention to assert supervisory authority over individual non-bank financial service providers and the potential implications of this shift in protocol. The conversation also covers the differences between supervision and enforcement, how companies can prepare for regulatory examinations, and the ways in which the CFPB and other regulators might leverage technology to transform the supervisory process. Links: Orrick Financial & Fintech Advisory RegFiPodcast.com

Rick Bueno, the president and CEO of Cyber Reliant Corp, joins RegFi cohosts Jerry Buckley and Sasha Leonhardt to share his insights about post-quantum cyber risk. Rick explains how the exponential difference in computing power between quantum and classical computers will transform numerous industries, including financial services. These benefits come with the potential for a new generation of cybersecurity threats. Rick outlines how policymakers and industry participants can prepare for post-quantum cybersecurity risk through technology-agnostic cybersecurity strategies and shifting from perimeter defense to data-centric solutions. The discussion also covers the complex intersection of quantum computing and financial regulation, highlighting the need for collaboration and careful consideration of the ethical and societal implications of emerging technologies. Links: Cyber Reliant Corp Information-Theoretic Security (Wikipedia) Orrick Financial & Fintech Advisory RegFiPodcast.com

Data is the lifeblood of the financial system, making cybersecurity threats a critical economic and national security risk. During this episode, RegFi cohosts Jerry Buckley, Sherry Safchuk and Sasha Leonhardt explore the operational and regulatory challenges of protecting financial services data from ransomware and other malicious exfiltration. The conversation outlines how financial services providers detect data breaches, their reporting and other legal obligations, and the complexities of coordinating law enforcement, outside counsel and other experts to effectively manage incidents and ransom demands. The group highlights the importance of strategic preparation, including routine tabletop exercises to pressure test monitoring and response plans. Links: Orrick Financial & Fintech Advisory RegFiPodcast.com

Orrick Partner Edward Somers joins Jerry Buckley and Sherry Safchuk for a conversation about the regulatory frameworks affecting electronic records and signatures for the origination and servicing of financial products. The group outlines the evolving relevance and interplay of the laws facilitating electronic transactions – including the Uniform Electronic Transactions Act (UETA), the federal E-Sign Act and various state laws – as well as the growing regulatory scrutiny of “dark patterns” in website and mobile app designs by the CFPB and FTC. The episode closes with a discussion about the potential for AI tools to improve consumer experiences and enhance understanding of financial products and transactions. Links: Orrick Financial & Fintech Advisory RegFiPodcast.com

Jerry Comizio joins RegFi cohosts Jerry Buckley and Sherry Safchuk for a conversation about the intricate world of virtual currencies. Professor Comizio is Associate Director of the Business Law Program at American University’s Washington College of Law, teaching one of the nation's first virtual currency law courses and authoring the seminal textbook Virtual Currency Law: The Emerging Legal and Regulatory Framework. He shares his insights into the rapidly evolving legal and regulatory frameworks surrounding digital assets, including a high-level overview of virtual currencies, their role in the economy and a theoretical look into what future crypto regulations might look like. Links: Jerry Comizio: Biography & Selected Works Orrick Financial & Fintech Advisory RegFiPodcast.com

The CFPB’s Proposed Larger Participant Rule for Payments Providers, if adopted, will subject large tech companies providing payments services and mobile wallets to bank-like supervisory examinations of their payments activities. Tech companies offering consumer finance services are already subject to CFPB enforcement, but the proposed rule would result in ongoing regulatory supervision by the Bureau. RegFi co-hosts Jerry Buckley, Sasha Leonhardt, Sherry Safchuk and Caroline Stapleton expand on their coverage from earlier this year, delving deeper into what newly covered institutions might expect from the examination process. The conversation includes an outline of the typical examination lifecycle, a discussion of likely CFPB supervisory priorities, and preparatory steps companies can take now to manage the exam process and reduce potential regulatory risks. Links: RegFi Ep. 15: Bank-like Supervision for Big Tech? A Look at the CFPB’s “Larger Participant” Rule CFPB Takes Next Step in Its Big Tech Regulatory Strategy (Orrick Insight) Orrick Financial & Fintech Advisory RegFiPodcast.com

Nick Cook joins RegFi co-hosts Jerry Buckley and Sasha Leonhardt for a conversation about how regulators globally are approaching technological innovation, both in the markets they supervise and within their own operations. Nick is the Chief Innovation Officer at the Alliance for Innovative Regulation (AIR) and previously served as the Director of the U.K. Financial Conduct Authority’s (FCA) Innovation Division, where he pioneered the TechSprint methodology for regulatory innovation and led the FCA’s data and analytics strategy. Nick shares insights about the rise of suptech – supervisory technology – in developed and emerging markets, challenges and opportunities for U.S. regulators seeking to adopt similar tools, and the importance of understanding human and cultural factors when managing rapid technological change in complex systems. Links: Alliance for Innovative Regulation (AIR) Orrick Financial & Fintech Advisory RegFiPodcast.com

Ramon Gomez, Managing Director at JPMorgan Chase, discusses the implications of Section 1033 of the Dodd-Frank Act on consumer data sharing. Topics include screen scraping risks, CFPB oversight, FDX standards, and coordinated regulatory efforts to protect consumer data in the financial sector.

FinRegLab Deputy Director Kelly Cochran joins RegFi cohosts Jerry Buckley and Caroline Stapleton for a conversation about how machine learning – including generative artificial intelligence – is used by consumer lenders and the evolving regulatory response. Kelly begins with a helpful distinction between the technologies commonly included under the broad “AI” moniker, noting that many of these algorithmic models are not new to credit underwriting. The discussion then pivots to the growing focus on generative AI and the need to balance its potential benefits with consumer protection, data privacy and explainability considerations. Kelly suggests that existing rules in the financial services regulatory framework can be adapted to address many of these issues and serve as a model for AI policymaking in other sectors. Links: FinRegLab Website Orrick Financial & Fintech Advisory RegFiPodcast.com

Jeff Hydrick, an Orrick partner and expert in financial regulation, dives into the transformative impact of fintech on commercial financing. He reveals how the pandemic accelerated the involvement of fintechs and non-bank financial institutions in small business lending. The discussion covers compliance hurdles due to inconsistent state and federal regulations. Hydrick emphasizes the need for standardized disclosures to empower borrowers and looks at emerging legislative changes that shape the future of financing.