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Abstract: 

Financial technology, or “FinTech,” is a financial services industry buzzword that is increasingly on the mind of regulators. In our first article, Lee A. Schneider, Max Shaul, and Clare K. Lascelles discuss the priorities for regulators when it comes to fintech. The authors discuss the roles played by the numerous financial regulators and the agencies’ focus on anti-money laundering, cybersecurity, and relationships between regulated institutions and third parties. Robert Siegel, in our second article, examines ongoing mortgage repurchase claims by investors against residential mortgage lenders. The author details defense strategies for originators facing repurchase demands, including issues such as the claimant’s judicial standing, whether the claimant incurred an actual out-of-pocket loss, and the claimant’s actions to bring the underlying breach to an originator’s attention. In our third article, Elizabeth Friedrich addresses how the Second Circuit Court of Appeals decision in U.S. v. Newman has altered the landscape for insider trading law, and the decision’s potential impact on both a wide range of existing cases as well as the government’s efforts to bring claims going forward. Newman interpreted the law to require that (1) the leaking company insider materially benefited and (2) the ultimate trader acting on the leak had knowledge of the benefit, an interpretation the Supreme Court is set to clarify in 2016. A State & Local column, by John Barrie, is this issue’s fourth piece. Mr. Barrie discusses Gillette v. Franchise Tax Board , which involved how to apportion income from a California source, and Direct Marketing Association v. Brohl , which involved calculating state sales taxes for purchases made over the internet. This issue closes with a staff-written Regulation column covering the Securities and Exchange Commission’s (SEC) recent proposed rulemaking regarding liquidity risk management for mutual funds and exchange-traded funds. In reviewing a representative sample of comments to the SEC’s proposal, the column notes the overwhelming opposition to the proposed risk management standards and underlying classifications, as well as a recognition of the practical difficulties for funds to engage in swing pricing.

Keywords: financial technology; investor protection; mortgage aggregators; mortgage originators; loan repurchase demand; insider trading; United States v. Newman; Gillette v. Franchise Tax Board; Direct Marketing Association v. Brohl; open-end fund liquidity r

Affiliations:  1: New York Law School.