By Sara Merken
Federal regulators aren’t ready to take concrete steps to offer fintech firms a special charter, acting Comptroller of the Currency Keith Noreika said Sept. 13.
Noreika told a fintech conference in New York that the new administration is still getting its feet wet on the issue. We are only “up to our ankles,” he said.
The OCC last December proposed taking charter applications from fintech firms. That action spawned litigation from state regulators amid questions about whether the agency has the authority to issue the charters.
Noreika became acting OCC director in May and has vigorously defended the agency’s authority in the fintech space. He said the agency and industry players will need to come together and set expectations for both sides ahead of issuing a special charter.
Noreika’s comments come one week after payment processor Square became the second fintech firm to try to secure an industrial loan company charter from the Federal Deposit Insurance Corporation.
“You can’t ignore the changing nature of technology and the banking industry,” Noreika said.
The OCC Office of Innovation, launched in October 2016, recently offered details about a pilot program to allow banks and third-party vendors to test out fintech products and services without the full burden of regulation.
The agency wants to support and encourage innovation without being “strangled” by regulation and a threat of legal liability in the initiative, Noreika said. A pilot program would only provide a certain level of a safe harbor from regulatory oversight and liability, he said.
President Trump’s pick to be comptroller of the currency, Joseph Otting, is awaiting Senate confirmation after the Senate Banking Committee advanced his nomination Sept. 7. Noreika said Otting, the former chief executive officer of OneWest Bank, is “well-suited” to take the changing business of banking to the next level.
To contact the reporter on this story: Sara Merken in New York at firstname.lastname@example.org
To contact the editor on this story: Seth Stern at email@example.com
Copyright © 2017 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)