Legal Seminar, Denver, CO

Wisconsin (Act 340) Authorizes the division of banks or the office of credit unions to accept and rely on information collected by other agencies or independent third parties in determining whether an institution has satisfied any requirement that is part of an examination and authorizes the regulators to provide a copy of any examination report to a federal home loan bank if the bank agrees to keep the information confidential.

Third Party Service Providers

The Alabama legislature has passed a bill authorizing the Superintendent of Banks to examine bank service providers. The bill is awaiting final approval by the Governor.

Elder Abuse – Protection of Vulnerable Adults from Financial Exploitation

Bills introduced this year are generally focused on creating a specific category of criminal offense for financial exploitation and avenues for filing injunctions on behalf of a vulnerable adult.

Enactments:

Florida (Ch. 100) Creates a cause of action for an injunction for protection against exploitation of a vulnerable adult. [Effective July 1, 2018] Kentucky (Ch. 127) Allows account disbursements to be delayed if there is a reasonable doubt that the disbursement may result in exploitation of a vulnerable adult. [Effective June 30, 2018] Louisiana (Act 434) Adds a new chapter, “Protection of eligible Adults from Financial Exploitation” to authorize financial institution to contact a third party and delay completion of a transaction when they have reasonable belief that financial exploitation of a vulnerable person may have occurred. [Effective October 1, 2018] Tennessee (Ch. 1050) Enacts the “Elderly and Vulnerable Adult Protection Act” that, among other things, provides for the reporting of financial exploitation of an elderly or vulnerable adult. [Effective June 30, 2018]

Fintech

Enactments:

Arizona (HB 2434) Authorizes the state’s Attorney General to create a Regulatory Sandbox program to allow limited access to the state market to test innovative financial products or services without obtaining a license. The AG is required to consult with the appropriate state regulatory agency when considering applications for a new financial product. The bill allows a 24-month period for such innovative products, sets maximum amounts for any loans or money transmissions offered under any program and addresses review and consumer protection provisions. [Effective 91 st day after adjournment which is scheduled for April 21, 2018.]