News & Analysis as of

Third-Party Relationships

Ropes & Gray LLP

Responding to the SitusAMC Data Breach

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Recently, major media reported that a key financial services provider, SitusAMC, suffered a substantial data security incident. This Alert summarizes what we know so far, the possible legal implications, and some action items...more

McDermott Will & Schulte

Illinois amends power of attorney law to better protect third parties from invalid documents

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On January 1, 2025, Illinois Public Act 103-0994 took effect, amending the Illinois Power of Attorney Act to reduce risk for third parties by ensuring the powers of attorney presented to them are still in force. The new law...more

Nelson Mullins Riley & Scarborough LLP

NYDFS Issues Additional Guidance on Managing Risks Related to Third-Party Service Providers

Covered Entities should expect heightened supervisory focus on relationships where third party service providers (TPSPs) access systems or handle non-public information (NPI). On October 21, the New York State Department of...more

Society of Corporate Compliance and Ethics...

Chatbots, Trust and Helplines

Employees may trust an AI chatbot more than they trust you, and that’s not necessarily a bad thing, if it leads to more reporting. In this podcast, Debbie Sabatini Hennelly, Founder & President of Resiliti shares that a...more

Thomas Fox - Compliance Evangelist

Culture Crafters - Ethics Culture Divide, Part 2 - Enhancing Corporate Culture: The Vital Role of Ethics in Talent Retention and...

In this second episode in a 3-part series of podcasts, Tom Fox and Sam Silverstein discuss the critical divide in companies around Ethics and Culture. This series is based on data from a national survey of over a thousand...more

Thomas Fox - Compliance Evangelist

Popcorn and Compliance: Episode 2 - Dracula’s Compliance Secrets: What Lurks in the Night

Welcome to a special series of Popcorn and Compliance. In this series, we will be looking at the Classic Universal Monster Movies from the 30s and 40s and mining them for compliance lessons. (Yes, it really is an excuse to...more

Wilson Sonsini Goodrich & Rosati

New York Regulator Issues Updated Guidance for Virtual Currency Custodians

Recognizing the growing demand for virtual currency custodial services and the increased use of sub-custodial relationships in the digital asset space, the New York Department of Financial Services (NY DFS) announced updated...more

Walkers

Updates in the Central Bank of Irelands OpRes Guidance

Walkers on

In the revised OpRes Guidance the Central Bank notes that there has been a gradual maturing of operational resilience frameworks within firms, industry shocks and ongoing change in financial services since the original OpRes...more

Orrick, Herrington & Sutcliffe LLP

Court orders bank to produce third-party records in prepaid debit card fees suit

On August 21, a federal magistrate judge in the District Court for the Western District of Washington ordered a bank to produce certain records related to its prepaid debit card program, including documents maintained by...more

Saul Ewing LLP

Sixth Circuit Imposes Heightened Standard in Non-Employee Sexual Harassment Cases

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Recently, in a case titled Bivens v. Zep, Inc., the Sixth Circuit Court of Appeals ruled that an employer will only be liable for a customer's harassment of an employee when the employer intends for such harassment to occur....more

Orrick, Herrington & Sutcliffe LLP

FDIC Approves Use of Pre-Populated Customer Information During Account Opening

On August 5, the FDIC announced that banks it supervises can comply with Bank Secrecy Act (BSA) requirements to obtain identity information from new customers by using a pre-populated form, provided that the person opening...more

Jones Day

French Supreme Court Sets New Boundary to Liability Toward Third Parties

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The Situation: The French Supreme Court recently considered whether a limitation of liability clause could be enforced against a third party to a contract claiming compensation for a breach of contract that caused it damage....more

WilmerHale

Interagency Issuances on Bank-Fintech Partnerships Highlights Risks, Opportunities, Importance of Industry Participant Engagement

WilmerHale on

The recent bank regulatory Joint Statement and request for information (RFI) on third-party deposit relationships and bank-fintech partnerships emphasize afresh regulators’ long-standing concern with financial institutions’...more

Morrison & Foerster LLP

Banking Agencies Address Banking Arrangements with Third Parties to Provide Deposit Products and Services

On July 25, 2024, the Federal Reserve Board, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation (collectively, the “Agencies”) issued a joint statement to banks regarding risks...more

Troutman Pepper Locke

30 States Reach Settlement Outlining Expectations for Paid Endorsements

Troutman Pepper Locke on

Last week, a bipartisan coalition of 30 state attorneys general (AG), led by Florida, Illinois, New York, and Texas, reached a settlement with Cameo — an online service that allows fans to pay for customized messages from...more

Ballard Spahr LLP

Bank Regulators Issue Statement on Third-Party Relationships with Financial Institutions and Publish Request for Information on...

Ballard Spahr LLP on

The federal banking regulators (The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation) issued on July 25 a lengthy joint statement...more

Ballard Spahr LLP

Banking Regulators Seek Comment on Third-Party Relationships with Financial Institutions

Ballard Spahr LLP on

The federal banking regulators are seeking comment to better understand the relationship between financial institutions and third parties that work for them....more

Troutman Pepper Locke

Federal Banking Agencies Reiterate Guidance on Managing Risks Posed By Fintech Partnerships and Other Third Party Relationships

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Last week, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency (collectively, the agencies) issued a joint statement highlighting...more

Patton Sullivan Brodehl LLP

The Perils of Buying Property from an LLC with Competing Claims to Managerial Authority

Prior LLC Jungle posts have addressed the tricky issue of LLC managerial authority in the context of the LLC’s dealings with third parties... As referenced in those posts, under Corporations Code section 17703.01, when an...more

Troutman Pepper Locke

Federal Banking Agencies Issue New Guidebook for Community Banks Managing Third-Party Relationships

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On May 3, the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency (collectively, the agencies) released a guidebook aimed at assisting...more

Miller Canfield

Michigan Supreme Court Expands Liability Under Anti-Discrimination Statute; Endorses Third-Party Retaliation Theory

Miller Canfield on

“Third party” or “associational” retaliation is reprisal taken by an employer against someone other than the person who engaged in “protected conduct.” In 2011, the U.S. Supreme Court ruled that Title VII’s anti-retaliation...more

Goodwin

2023 Year in Review: Fintech

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Welcome to the Fintech chapter of our annual report Consumer Financial Services 2023 Year in Review. Looking Ahead to 2024 - The CFPB is expected to finalize rulemaking authorizing supervision of payment application...more

Ballard Spahr LLP

OCC Risk Perspective Report Focuses on Third-Party Relationships with Fintechs

Ballard Spahr LLP on

In its Fall 2023 Semiannual Risk Perspective, published on December 7, the Office of the Comptroller of the Currency (“OCC”) reported on key issues facing the federal banking system. In evaluating the overall soundness of...more

The Volkov Law Group

Lessons Learned from the Albemarle FCPA Enforcement Action: Mind Your Third Parties (Part III of III)

The Volkov Law Group on

The Albemarle FCPA enforcement action was announced at a good time.  This year has been a slow year for DOJ’s FCPA enforcement program, although there are several months before the end of the year. The SEC, on the other hand,...more

The Volkov Law Group

Albemarle’s Reliance on Third-Parties to Execute Bribery Schemes (Part II of III)

The Volkov Law Group on

Albemarle’s bribery schemes look and sound like text-book examples of third-party agents being paid high commissions as a way to funnel bribery payments to foreign officials at state-owned oil refineries.  However, as usual,...more

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