Just before Americans began their Fourth of July holiday, the U.S. Commodity Futures Trading Commission (CFTC) Division of Enforcement Director announced that the division has established two key task forces: the Cybersecurity and Emerging Technologies and the Environmental Fraud Task Force.1 Both task forces will be staffed with attorneys and investigators across the Division of Enforcement with the goal of serving as subject matter experts and prosecuting cases. As a result, CFTC registrants should be prepared for heightened focus on cybersecurity and environmental fraud, particularly in the derivatives and relevant spot markets.
The Consumer Financial Protection Bureau (CFPB) on October 27, 2022 took the long-anticipated first step to issue a regulation implementing Section 1033 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. This followed a preview by CFPB Director Rohit Chopra at the Money 20/20 conference on October 25 in which he outlined the “CFPB’s new approach to regulation,” which is designed to create “catalysts for more competition.” With respect to Section 1033, Director Chopra said that the CFPB is “exploring safeguards to prevent excessive control or monopolization by one, or even a handful of, firms” and will be working toward avoiding regulations that could be “rigged in favor of some players over others.” Director Chopra’s focus on competition as an essential element of consumer protection has been a hallmark of his directorship.
From February 28-March 3, Sidley and OneTrust DataGuidance hosted their annual Data Protection in Financial Services (DPFS) Week, a series of webinars looking at the impacts of data privacy across the financial sector. Industry speakers covered a range of issues including:
- How the latest privacy and cybersecurity developments in Europe and the U.S. have impacted financial services
- How new and existing privacy and cyber requirements intersect with finance-specific regulation
- What financial organizations can do to keep ahead of the curve in the ever-evolving data privacy and cyber landscape
- How to deal with and manage the key issues for 2022, such as AI, data governance, and international transfers
On September 30, the U.S. Senate confirmed Commissioner Rohit Chopra of the Federal Trade Commission as the new Director of the Consumer Financial Protection Bureau (CFPB). Director Chopra is expected to usher in a regime of dramatically increased enforcement and creative, expansive regulation. Many financial institutions will have questions and concerns about the CFPB, how it will affect their businesses and operations, and how to productively engage with this exceptionally powerful and opaque regulator. It is now more important than ever to closely follow the work of the CFPB as new leadership seeks to aggressively employ all of the agency’s tools in service of the American consumer. (more…)