New York, NY, September 19, 2012 --(PR.com
)-- The Knowledge Group/The Knowledge Congress Live Webcast Series, the leading producer of regulatory focused webcasts, has announced today that Stephen A. Fogdall, Partner, Schnader Harrison Segal & Lewis LLP, will speak at a 2-hour webcast entitled “CFPB Enforcement Authority: What the Future May Hold LIVE Webcast.” This event is scheduled for November 16, 2012 from 12pm-2pm (ET).
About Stephen A. Fogdall
Mr. Fogdall participates in numerous areas of the Firm’s commercial litigation practice, including financial services litigation, product liability litigation, and class action defense. He has litigation experience in state and federal courts at both the trial and appellate levels.
About Schnader Harrison Segal & Lewis LLP
Schnader's team of outstanding lawyers serves the complex litigation and transactional needs of both long established and newly emerging businesses, including those doing business internationally and in cyberspace. We also provide wealth management and an array of personal legal services to individuals.
To know more about Stephen A. Fogdall and Schnader Harrison Segal & Lewis LLP, please visit www.schnader.com/
The CFPB recently marked its one year anniversary (July 21, 2012), but it has yet to flex its enforcement muscle. This is an opportune time to analyze the CFPB’s enforcement authority and how it may be used. Such an analysis is all the more appropriate because there is considerable uncertainty regarding just what the scope of that authority will be. In particular, there is uncertainty regarding the entities that the CFPB will regulate as well as the conduct that it will target.
Title 10 of the Dodd-Frank Act, known as the Consumer Financial Protection Act (“CFPA”), grants the CFPB authority of varying degrees over three broad classes of entities: (1) depository institutions with $10 billion or more in assets; (2) depository institutions with less than $10 billion in assets; and (3) certain nondepository institutions (“non-depository covered persons”). The allocation of authority between the CFPB and other federal agencies with respect to these three categories of institutions is less than clear cut. The CFPA gives the CFPB rulemaking authority over all of these entities, but allocates examination and enforcement authority very differently. The CFPB will have exclusive examination authority only over large depository institutions (the first of the three categories). Other banking agencies will retain their examination authority over smaller institutions. As to enforcement authority, the CFPB will have to coordinate, and potentially compete, with other federal agencies. While the CFPA gives the CFPB “primary” enforcement authority over large depository institutions and certain non-depository institutions, other agencies may exercise enforcement authority as well, if they recommend an enforcement action to the CFPB and the CFPB fails to proceed. Moreover, the precise contours of these three categories of entities are still being defined.
There is also uncertainty about the scope of conduct the CFPB is authorized to target. The CFPA authorizes the CFPB to define and prohibit “unfair, deceptive or abusive acts or practices in connection with” consumer financial products or services. CFPA § 1031(b), 12 U.S.C. § 5531(b). This language is noticeably broader than the powers granted to the Federal Trade Commission, which is authorized to define and prohibit “unfair or deceptive acts or practices in or affecting commerce.” 15 U.S.C. § 45(a). The authority given to the CFPB incorporates a new component of impropriety, namely, acts or practices that are “abusive,” and what precisely these are has yet to be determined. Moreover, the broader authority granted to the CFPB does not displace the narrower authority already granted to the FTC. Under the CFPA, the FTC retains the authority it has always had to target “unfair or deceptive” acts or practices. Thus, financial services companies subject to the CFPB’s and FTC’s enforcement powers will have to adhere to two standards of conduct simultaneously — the FTC’s “unfair or deceptive” standard and the CFPB’s new “unfair, deceptive or abusive” standard that has yet to be defined.
About The Knowledge Group, LLC/The Knowledge Congress Live Webcast Series
The Knowledge Congress is a series of live webcasts produced by The Knowledge Group, LLC, which examine trends, regulatory, and technology changes across a variety of industries. Its mission is to produce unbiased, objective, and educational live webcasts that examine industry trends and regulatory changes from a variety of different perspectives. The goal is to deliver a unique multilevel analysis of an important issue affecting business in a highly focused format.
The organization brings together the world's leading authorities and industry participants through informative two-hour webcasts to study the impact of changes and emerging trends. Hear from leading government officials/regulators, key thought leaders, and industry experts objectively analyze the latest trends and issues and their impact on industries. For further details, please visit the organization’s website: www.knowledgecongress.org