US regulators to focus on consumer protection, says survey
A new impact report from Aite Group finds US regulators are set to focus on consumer protection.
BOSTON – Concentration by US state regulators on consumer protection is set to increase compliance demands for financial services firms, according to a new report by the Aite Group, an independent research and consultancy firm.
The report, entitled ‘Looking Ahead: An Analysis of Pending State Legislation and Financial Institutions’, looks at US state legislature level, where there are more than 176 pending bills focusing on mortgages, 183 looking into banking practices and 233 looking into the problem of identity theft.
There are more than 1,300 bills relating to financial service providers, and they could potentially affect banks, credit unions and other firms offering services such as deposit accounts, lending, credit cards and mortgages.
The report expects between 5% and 20% of the bills to pass, and for consumer protection issues to remain on the agenda.
New York was the standout leader with 284 pending bills. Some 32% of those relate to mortgages, 26% to banking operations and 16% to credit cards.
Analysis of US regulation is easiest at the federal level, where a limited number of bodies with highly developed infrastructures, but the sheer volume and relative independence of legislation at state level makes for a more daunting task.
Eva Weber, Aite Group analyst and author of the report, says: “While concerns over the current economic climate and the possibility that subprime mortgage lending will lead the country into recession have resulted in sabre rattling by the US Congress and federal regulators, several states are already putting laws in place to protect their citizens.”
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Hopes rise for cross-product netting under SA-CCR
Banks want rule change in Basel III endgame to lower capital costs of clearing UST repos
Long way round: EU banks lament credit spread saga
EBA ditches some of banks’ preferred qualitative reasonings – and shortcuts – for CSRBB exclusion
Iosco chief sees no need for CCPs to hold more capital
CCPs have shown resilience in volatile times without extra skin-in-the-game, says Buenaventura
Banks urge EBA to delay risk benchmarking amid Iran conflict
Risk managers say hypothetical portfolio exercise clashes with severe market turbulence
EU officials tamp down hopes for bank capital relief
Capital cuts are not a done deal in EC’s review of competitiveness, despite US deregulation
EU regulators clash over ceding supervision to Esma
Belgian and Spanish regulators differ on drive for centralised oversight of cross-border firms
Why Trump’s latest Truth should make TradFi twitchy
Wall Street is becoming the villain in US president’s crypto movie
EBA guidance prompts banks to rethink CSRBB perimeters
Banks will likely have to expand their credit spread risk coverage following recommendations