Financial Service Law
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
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- Report Finds Sharp Increase in Investment Fraud Cases in 2022A new study examines the rise in investment fraud cases and the methods being used to deceive victims, InvestmentNews reports.
- OFAC Enforcement in 2023: Calculating Civil PenaltiesThe Office of Foreign Assets Control (OFAC) has broad enforcement authority under federal law to protect national security. To hold financial institutions, businesses, and individuals accountable for economic sanctions programs violations (such as financial transactions with specially designated nationals(SDN) list and blocked persons list, or those on the sanctions lists) and other statutory and regulatory offenses, OFAC has the power to impose various penalties under its Economic Sanctions Enforcement Guidelines (the “Enforcement Guidelines”).
- Choosing a SEC Defense Lawyer: Three ConsiderationsYou are in shock. You just opened an overnight envelope and discovered that you've received a subpoena from the Securities and Exchange Commission (SEC) requesting documents and requiring you to appear before the SEC for sworn testimony. After the initial panic subsides (a bit), you hit the Internet to search for a SEC defense lawyer to represent you. But, how do you choose amongst the many SEC defense attorneys out there? How do you know who to entrust with such a serious process and so much at stake, including potential fines and reputational damage?
- 8 Famous U.S. Money-Laundering Cases in 50 YearsMoney laundering is the movement of illicit cash or cash equivalents into, out of, or through U.S. businesses or financial institutions. An example is when unlawfully obtained money is routed through multiple banks and businesses to conceal the original source of those funds.
- FINRA Notice Warns Firms of Fraudulent TransfersThe Financial Industry Regulatory Authority issued an alert to member firms regarding fraudulent transfers of customer assets.
- It Is Now Harder for Brokers to Expunge RecordsThe Securities and Exchange Commission (SEC) has approved a proposal that would make it more difficult for brokers to expunge customer disputes from their records, reports Investment News.
- FINRA Plans at Least 1,000 Reg B1 Exams by End of 2023An executive with the Financial Industry Regulatory Authority provided an update on the authority’s plans for this year’s Regulation Best Interest exams, reports Financial Advisor.
- 2023 OFAC Regulations: FINRA-Regulated CompaniesSecurities professionals and firms, including foreign subsidiaries owned or controlled by U.S. companies, that are regulated by the Financial Industry Regulatory Authority (FINRA) also have to comply with the rules and regulations made by the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC), created to accomplish foreign policy and national security goals. Failing to ensure compliance with OFAC’s legal requirements can open offending individuals and firms to substantial penalties and the negative publicity that comes with trading with a person or company that is under economic sanction for threatening American interests.
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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.
