Finance Laws relate to any statutes, policies, regulations, or other forms of rules governing financial transactions in which one party raises money through borrowing, stock sales, bonds, or other means of investment. Examples include antitrust, bankruptcy, and securities laws that protect the financial interests of small businesses and individual investors. These laws may also have an impact on bankruptcy proceedings, particularly for corporate debtors.
Antitrust laws are those laws designed to promote vigorous competition and to protect consumers from anti-competitive market practices. These laws can have relation to finance in situations such as supposed competitors investing in one another or buying another company's stocks in an effort to take over the selling company.
Banking laws can play a part in finance law with regard to regulations on lending requirements, types of investments in which banks can engage, and reporting requirements related to these investments.
Bankruptcy plays a role in finance laws with regard to the way financed debts are protected or discharged in the bankruptcy proceedings.
Securities laws play a heavy role in finance law. If a business sells publicly traded stocks then it must comply with certain reporting and financial disclosure obligations as required by the Securities and Exchange Commission (SEC). These can include creating disclosures and otherwise complying with the requirements of Sarbanes-Oxley.
There are many other areas of law that relate to financing. To learn more, you can review the materials found on this page, as well as many of the other areas identified under the Law tab on the menu bar. Similarly, if you have questions about finance law and need an attorney, you can find one in your area by visiting our Law Firms page.
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Articles on HG.org Related to Finance Law
- U.S. Economic Sanctions: A 3/4-Year ReviewAside from one last mid-January initiative by the Obama Administration to begin rolling back sanctions targeting Sudan, the U.S. Treasury Department's Office of Foreign Assets Control ("OFAC") was quiet at the start of 2017 and during the first 100 days of the transition.
- Common Litigation Challenges for Financial AdvisorsIn the securities law arena, there are more issues than just fraud, misrepresentation, breach of contract, etc. Financial advisors are sometimes involved in the following types of litigation problems and should, therefore, be familiar with the following terms: Promissory Notes, Broker Raiding, Regulatory Compliance, Solicitation, Broker Protocol and Sunset Agreements/Sale of Practice.
- The Financial Advisor Expungement ProcessFinancial advisors registered with FINRA each have information regarding their experience in the securities industry available on FINRA’s Broker Check. The purpose of BrokerCheck is to help investors make informed choices about brokers and brokerage firms-and to provide easy access to investment adviser information.
- Are Wages to Independent Contractors Subject to Garnishment?Persons that work for themselves are considered independent contractors even if they are employed within the building of a company. These individuals are not considered employees and may not be subject to various regulations or stipulations, and this means that numerous aspects do not apply to these persons as they would a standard employee.
- Overview of Business Development Company (BDC) InvestmentsA Business Development Company (“BDC”) is a form of investment company that invests in small and mid-sized businesses. Investors can buy shares in a BDC, and the money from their investments is used to fund the businesses. In turn, investors can profit from dividends paid on their investments, or, in some cases, the sale of their shares.
- Financial Advisor Promissory Notes (Up-front Forgivable Loans)Promissory Notes (often called an up-front forgivable loans) are commonly used as a recruiting tool by many of the major brokerage firms in the securities industry, including Morgan Stanley, Merrill Lynch, Wells Fargo, Ameriprise and UBS Financial Services. Essentially, brokerage firms use the up-front forgivable loans to recruit financial advisors from other firms to bring their clients (or “book of business”) to the new firm.
- Real Estate Financing for California Real Estate InvestorsThe financial commitments required in real estate investing can vary in size and scope, from purchasing a handful of shares in a real estate investment trust (REIT) or real estate syndicate to purchasing a house or office building.
- Importance of Brokerage Firm Due Diligence on Alternative Investments“Alternative investments” generally refer to all non-traditional investments – like stocks, bonds, and mutual funds. Examples include oil and gas limited partnerships, non-traded REITs, business development companies, tenant-in-commons, and equipment leasing funds. The commonality is that alternative investments are high-risk, generally illiquid, and pays a high commission to the advisor that recommends them.
- Issuing Equity to Employees in Exchange for Compensation in a StartupEquity may be issued to employees as a form of compensation when a startup company is initially opening for business. The shares, stock or interest may be passed to these workers, but to do so, the owner should understand fully how this could affect him or her and the business both in the startup phase and later when the equity means more.
- Common Legal Mistakes to Avoid in Your BusinessWhen attempting to keep a business on track, it is essential to avoid various legal mistakes that could bring the entire company down. This means knowing what issues to avoid, how these matters should be handled and hiring a lawyer to increase the possibility of success in the legal world as well as the business realm.
- 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.
Finance Law – US
- ABA - Task Force on Financial Markets Regulatory Reform
The American Bar Association has established a Task Force on Financial Markets Regulatory Reform, which has the following mission: To study and analyze the legal and regulatory implications of the recent financial crisis, especially as they relate to the practice of law and effective representation of clients.
- Accountability and Transparency in Rating Agencies Act
Amends the Securities Exchange Act of 1934 to direct the Securities and Exchange Commission (SEC) to review credit ratings issued by each nationally recognized statistical rating organization (NRSRO) to ensure that the NRSRO has established and documented internal processes for determining credit ratings consistent with SEC rules. Requires each NRSRO to make available and maintain such records and information as the SEC may prescribe.
- Dodd-Frank Wall Street Reform and Consumer Protection Act
This is comprehensive legislation to overhaul regulations in the financial sector. It would establish a new Consumer Financial Protection Agency to regulate products like home mortgages, car loans and credit cards, give the Treasury Department new authority to place non-bank financial firms, like insurance companies into receivership, regulate the over-the-counter derivatives market, and more.
- Financial Institutions Policy
The Office of Financial Institutions Policy develops, analyzes, and coordinates the Department's policies on legislative and regulatory issues affecting financial institutions, including depository institutions, insurance companies, government sponsored enterprises, securities firms, finance companies, mutual funds, and all other regulated and unregulated financial intermediaries. The Office's principal focus is on issues dealing with safety and soundness, market structure, condition, and competitiveness, and regulatory structure.
- Financial Stability Plan
In late 2008 and early 2009, our nation faced one of the worst financial and economic crises in its history. A growing financial panic threatened the health of our entire economy. Businesses were shedding hundreds of thousands of jobs per month. Ordinary Americans were questioning the safety of their savings in banks. Access to credit for families and businesses was drying up. Confidence in the basic soundness of our financial system had been severely shaken.
- United States Department of the Treasury
The Department of the Treasury's mission highlights its role as the steward of U.S. economic and financial systems, and as an influential participant in the global economy.
Organizations Related to Finance Law
- Board of Governors of the Federal Reserve System
The Federal Reserve System's structure is composed of the presidentially appointed Board of Governors (or Federal Reserve Board), the Federal Open Market Committee (FOMC), twelve regional Federal Reserve Banks located in major cities throughout the nation, numerous other private U.S. member banks and various advisory councils.
- Community Development Financial Institutions Fund
The vision of the Community Development Financial Institutions Fund (the CDFI Fund) is an America in which all people have access to affordable credit, capital and financial services. The CDFI Fund's mission is to expand the capacity of financial institutions to provide credit, capital, and financial services to underserved populations and communities in the United States.
- Federal Financial Institutions Examination Council (FFIEC)
The Federal Financial Institutions Examination Council (FFIEC) was established on March 10, 1979, pursuant to title X of the Financial Institutions Regulatory and Interest Rate Control Act of 1978 (FIRA), Public Law 95-630. In 1989, title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) established The Appraisal Subcommittee (ASC) within the Examination Council.
- Financial Management Service
The Financial Management Service is a bureau of the United States Department of the Treasury. Our mission is to provide central payment services to Federal Program Agencies, to operate the federal government's collections and deposit systems, to provide government-wide accounting and reporting services and to manage the collection of delinquent debt owed to the government.
FinCEN’s mission is to enhance U.S. national security, deter and detect criminal activity, and safeguard financial systems from abuse by promoting transparency in the U.S. and international financial systems.
- Money Matters
The Federal Trade Commission (FTC), the nation’s consumer protection agency, created this website to help you tackle some money issues head-on. Use the menu to the right to find tips and resources on money matters.
MyMoney.gov is the U.S. government's website dedicated to teaching all Americans the basics about financial education. Whether you are buying a home, balancing your checkbook, or investing in your 401(k), the resources on MyMoney.gov can help you maximize your financial decisions. Throughout the site, you will find important information from 20 Federal agencies and Bureaus designed to help you make smart financial choices.
- Office of the Comptroller of the Currency
The OCC's primary mission is to charter, regulate, and supervise all national banks. We supervise the federal branches and agencies of foreign banks. Our goal in supervising banks 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 Finance Law
- Business Finance Magazine
Business Finance is the hands-on, how-to authority serving the needs of the senior finance professional. Each issue of Business Finance supplies senior finance executives information and insight into key finance issues, strategies, trends and technologies to help them advance their organizations in today’s highly competitive global economy.
- Forbes - Personal Finance
Forbes.com Inc. a leading Internet media company, is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.
- Money Smart - A Financial Education Program
The Federal Deposit Insurance Corporation (FDIC) recognizes the importance of financial education, particularly for those with little or no banking experience. In 2001, the FDIC started a national financial education curriculum by launching Money Smart, a comprehensive financial education curriculum designed to help individuals outside the financial mainstream enhance their financial skills and create positive banking relationships.
- Office of Financial Education and Financial Access
As America recovers from the most severe financial crisis since the Great Depression, it’s critical that we strengthen every aspect of our financial system. That means not only strong reforms and consumer protections, but also improved financial literacy and financial access. The Obama Administration is committed to expanding the financial tools and education available to every American to help ensure that families are more secure for their financial futures.