Financial Service Law


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Financial services are those services provided by businesses in the finance industry, including organizations that manage money like credit unions, banks, credit card companies, insurance companies, accountants, consumer finance companies, stock brokerages, investment funds, and some government sponsored enterprises.

Banks

A "commercial bank" is what is commonly referred to when one uses the term “bank.” A commercial bank differs from an investment bank in that a commercial bank lends money directly to businesses while an investment bank helps businesses raise money from other firms, usually through the exchange of bonds or stock. Typical commercial bank services include holding money and allowing withdrawals, issuing payments based on checks, providing personal and business loans, issuing credit and debit cards, and so forth. These entities are heavily regulated by state and federal law and a number of regulatory agencies.

Foreign Exchange Service

Foreign exchange services allow the transfer of money from the currency of one nation to another. These are heavily regulated by both domestic and international laws, as well as many banking and other regulations.

Asset Management Services

Asset management usually refers to the servicing of collective investment funds. Entities offering these services are usually registered with the Securities and Exchange Commission (SEC) as Registered Investment Advisors. The focus of these services are usually the growth of capital through client investments.

Insurance

Another, commonly overlooked financial service, is insurance. Insurance is regulated at both the state and federal level. Many insurance policies are backed by investments which are, themselves, further regulated by the SEC and other agencies.

Other Financial Services

Examples of other industries that fall under the heading of financial services may include bank-issued credit and debit cards, credit card processing services, hedge fund investing, financial intermediation services, private equity funds, angel investment services, and many others.

For more information about the laws affecting the financial services industry, please review the materials below. Additionally, if you have particular questions and need legal assistance, you may visit our Law Firms page for a listing of attorneys in your area who can assist you.

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Articles on HG.org Related to Financial Services Law

  • Georgia Court of Appeals Denies Grading Contractors' Claims
    A grading subcontractor was not paid for putting in the roads in a new subdivision; after the construction lender foreclosed upon the project developer, the subcontractor sought payment from the bank. After the trial court awarded the subcontractor its full claim plus attorneys fees, the Georgia Court of Appeals reversed. Some very important lessons for subcontractors and lien claimants are made clear in the ruling.
  • Willfulness and the Civil FBAR Penalty
    In 2008, when it was revealed that wealthy individuals around the world were utilizing accounts and trusts in Liechtenstein to evade taxes, the United States initiated a coordinated effort with foreign governments to combat tax evasion through the use of offshore trusts and accounts. The U.S. Department of Justice (DOJ) has since launched criminal investigations of several foreign banks, many of which are ongoing.
  • Class Action Lawsuit Against Life Partners Will Move Forward Following Judge’s Ruling
    A Texas judge has rejected a motion by Life Partners Holdings, Inc. to toss a class action lawsuit filed by investors who allege they were misled by the life settlements company. Three Life Partners executives were also named in the lawsuit, which alleges that the company fraudulently misrepresented the nature of life settlements that were sold to investors, making them appear more valuable than they actually were.
  • Managing Retirement Benefits of Trust or Trusteed IRA
    Congratulations on making the decision to plan for your retirement accounts through a trust or trusteed IRA. You’ve selected a cost-effective, responsible plan for your future. Now the question is, “What do I do in this plan?”
  • IRS Changing Terms for Offshore Account Holders
    U.S. taxpayers hiding assets abroad should take note of the Internal Revenue Service’s plan to sharply increase penalties for such acts, while those who unintentionally fail to disclose offshore accounts will experience much more leniency.
  • Planning for the Million Dollar Balance Retirement Account
    A million dollar retirement account sounds like a significant sum. If something tragic were to happen, a retirement account of this size would seem to financially care for it’s beneficiaries for a long time. However, studies have shown that a typical inheritance is spent within 17 months.
  • Divorce and Credit Card Debt – Known and Unknown
    More and more couples are racking up excessive amounts of debt. To make matters worse, some debt, especially credit card debt, is hidden from the other spouse. Some blame this phenomenon on the fact that more marriages consist of two-income couples. Each spouse may find it difficult to relinquish control of his or her own money. But when divorce is on the horizon, how is this debt ultimately divided?
  • Protect your Financial Security During and After Divorce
    A growing number of people are divorcing late in life. No matter what the reason it is imperative to protect your financial security throughout and after the divorce process. You have accumulated a lot of things during the marriage—now is the time to retain as many as possible. There are savings and investment accounts, real estate and other personal and in some cases business assets to consider. An estate plan must be updated, health and other insurance replaced and the list goes on.
  • Extra! Extra! Read All About It! IRS Commissioner Announces That Changes Are In the Offing For OVDP 2012
    On June 3, 2014 the new IRS Commissioner, John A. Koskinen, gave a speech before the International Business - OECD International Tax Conference. His speech covered the history of the offshore enforcement initiative since the UBS debacle in 2009. His remarks acknowledge what most professionals in the tax community have recognized since the inception: that OVDP needs more tweaking in order to meet the overall goals of enforcement and fairness.
  • U.S. District Court Upholds Multiple Willful FBAR Penalties Against Taxpayer
    In a case that has raised eyebrows in the tax community, a jury in the Southern District of Florida has sustained the IRS’s assessment of multiple willful FBAR penalties against an American business man and bank director.
  • All Banking and Finance Law Articles

    Articles written by attorneys and experts worldwide discussing legal aspects related to Banking and Finance including: asset protection, capital markets, corporate finance, financial planning, financial services law, investment law, offshore accounts, private equity, project finance, public finance, securities, trade investment and venture capital.

Financial Services Law - US

  • ABA - Banking And Financial Services Subcommittee

    The Committee considers matters involving the federal and state regulation of financial institutions and monitors relevant legislative developments, with particular emphasis on the manner in which regulations are administered and enforced. Such matters fall within the jurisdiction of the Department of Treasury, the Comptroller of the Currency, the Office of Thrift Supervision, the Federal Reserve Board, the Federal Housing Finance Board, and various state agencies.

  • Community Reinvestment Act (CRA)

    The Community Reinvestment Act (CRA), enacted by Congress in 1977 (12 U.S.C. 2901) and implemented by Regulations 12 CFR parts 25, 228, 345, and 563e, is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate. In this section of the web site, you can find out more about the regulation and its interpretation and information on CRA examinations.

  • Equal Credit Opportunity Act (ECOA) - FTC

    The Federal Trade Commission (FTC), the nation’s consumer protection agency, enforces the Equal Credit Opportunity Act (ECOA), which prohibits credit discrimination on the basis of race, color, religion, national origin, sex, marital status, age, or because you get public assistance. Creditors may ask you for most of this information in certain situations, but they may not use it when deciding whether to give you credit or when setting the terms of your credit. Not everyone who applies for credit gets it or gets the same terms: Factors like income, expenses, debts, and credit history are among the considerations lenders use to determine your creditworthiness.

  • Fair Housing Act

    Title VIII of the Civil Rights Act of 1968 (Fair Housing Act), as amended, prohibits discrimination in the sale, rental, and financing of dwellings, and in other housing-related transactions, based on race, color, national origin, religion, sex, familial status (including children under the age of 18 living with parents or legal custodians, pregnant women, and people securing custody of children under the age of 18), and handicap (disability).

  • Federal Reserve System

    The Federal Reserve System is the central bank of the United States. It was founded by Congress in 1913 to provide the nation with a safer, more flexible, and more stable monetary and financial system. Over the years, its role in banking and the economy has expanded.

  • Gramm-Leach Bliley Act

    The Financial Modernization Act of 1999, also known as the "Gramm-Leach-Bliley Act" or GLB Act, includes provisions to protect consumers’ personal financial information held by financial institutions. There are three principal parts to the privacy requirements: the Financial Privacy Rule, Safeguards Rule and pretexting provisions.

  • Home Mortgage Disclosure Act (HMDA)

    The Home Mortgage Disclosure Act (HMDA) was enacted by Congress in 1975 and is implemented by the Federal Reserve Board's Regulation C. This regulation provides the public loan data that can be used to assist: in determining whether financial institutions are serving the housing needs of their communities; public officials in distributing public-sector investments so as to attract private investment to areas where it is needed; and in identifying possible discriminatory lending patterns.

  • House Committee on Financial Services

    The Committee oversees all components of the nation's housing and financial services sectors including banking, insurance, real estate, public and assisted housing, and securities. The Committee continually reviews the laws and programs relating to the U.S. Department of Housing and Urban Development, the Federal Reserve Bank, the Federal Deposit Insurance Corporation, Fannie Mae and Freddie Mac, and international development and finance agencies such as the World Bank and the International Monetary Fund. The Committee also ensures enforcement of housing and consumer protection laws such as the U.S. Housing Act, the Truth In Lending Act, the Housing and Community Development Act, the Fair Credit Reporting Act, the Real Estate Settlement Procedures Act, the Community Reinvestment Act, and financial privacy laws

  • Industrial Loan Companies - FDIC

    Industrial loan companies and industrial banks (collectively, ILCs) are FDIC-supervised financial institutions whose distinct features include the fact that they can be owned by commercial firms that are not regulated by a federal banking agency.

  • Sarbanes-Oxley Act of 2002

    The legislation came into force in 2002 and introduced major changes to the regulation of financial practice and corporate governance. Named after Senator Paul Sarbanes and Representative Michael Oxley, who were its main architects, it also set a number of deadlines for compliance. The Sarbanes-Oxley Act is arranged into eleven titles. As far as compliance is concerned, the most important sections within these are often considered to be 302, 401, 404, 409, 802 and 906. An over-arching public company accounting board was also established by the act, which was introduced amidst a host of publicity.

Organizations Related to Financial Services Law

  • American Bankers Association

    Founded in 1875 and based in Washington, DC, the American Bankers Association brings together banks of all sizes and charters into one association. ABA works to enhance the competitiveness of the nation's banking industry and strengthen America's economy and communities. Its members – the majority of which are banks with less than $125 million in assets – represent over 95 percent of the industry's $13.3 trillion in assets and employ over 2 million men and women.

  • American Institute of Certified Public Accountants - AICPA

    The American Institute of Certified Public Accountants is the national, professional organization for all Certified Public Accountants. Its mission is to provide members with the resources, information, and leadership that enable them to provide valuable services in the highest professional manner to benefit the public as well as employers and clients. In fulfilling its mission, the AICPA works with state CPA organizations and gives priority to those areas where public reliance on CPA skills is most significant.

  • Bank Information Security

    BankInfoSecurity.com was created as a reference tool. BankInfoSecurity.com strongly believes that education on security issues reinforces the need for maintaining customer data confidentiality and integrity, thus improving the long term security posture of an organization. Because we understand the community banking community, BankInfoSecurity.com was able to establish a medium whose content was personalized and appropriate for the industry.

  • National Credit Union Administration (NCUA)

    The National Credit Union Administration (NCUA) is the independent federal agency that charters and supervises federal credit unions throughout the United States and its territories. NCUA administers the National Credit Union Share Insurance Fund (NCUSIF). Backed by the full faith and credit of the United States government, the NCUSIF insures the member accounts in all federal credit unions and the substantial majority of state-chartered credit unions

  • Office of Comptroller of the Currency (OCC)

    The OCC's primary mission is to charter, regulate, and supervise all national banks and federal savings associations. We also supervise the federal branches and agencies of foreign banks. Our goal in supervising banks and federal savings associations is to ensure that they operate in a safe and sound manner and in compliance with laws requiring fair treatment of their customers and fair access to credit and financial products.

Publications Related to Financial Services Law

  • Financial Services Articles

    Maximize customer lifetime value, improve financial performance and calculate enterprise wide risk measures for banking, insurance, investments and financial planning.

  • Financial Services Forum

    The Financial Services Forum is a non-partisan financial and economic policy organization comprising the CEOs of 18 of the largest and most diversified financial services institutions doing business in the United States.


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