On December 2, 2016, the Office of the Comptroller of the Currency (“OCC”) announced its plans to move forward with a proposal to consider applications from financial technology (“fintech”) companies to receive charters as special purpose national banks. The OCC simultaneously released a white paper detailing the program. The OCC is seeking comments on its proposal, including responses to 13 specific questions listed in the paper. The comment period ends on January 15, 2017.
The announcement is potentially significant for the fintech sector because it could relieve them of needing to register or obtain licenses in various states and face differing sets of laws and restrictions. It may also move the US regulatory climate for this industry closer to that of the UK, where (i) the Financial Conduct Authority (“FCA”) has taken the position that marketplace lenders should be regulated as banks; and (ii) e-money issuers require only one central license (rather than multiple licenses for each province or county), which (subject to Brexit) can also be “passported” to other EU jurisdictions.
For more on this story visit the following link: OCC Explores Special Purpose National Bank Charter for Fintech Companies
Source: JDSUPRA Business Advisor