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  • Texas regulator, industry groups warn of increased cyber risk

    State Issues

    On April 8, the Texas Department of Banking, the Independent Bankers Association of Texas and the Texas Bankers Association issued a joint notice warning that cybercriminals and nation state actors use times of crisis to exploit financial institutions. The notice urged institutions to warn employees and customers of social engineering, remind them of when online/virtual meeting platform links are expected and legitimate, and inform them of scams that are preying on Covid-19 fears. The notice also suggested institutions redistribute IT policies to employees and remind them about security expectations, and maintain secure connections for remote workers.

    State Issues Covid-19 Texas Banking Privacy/Cyber Risk & Data Security

  • SEC announces temporary, conditional relief for certain business development companies

    Federal Issues

    On April 8, the SEC announced an order providing temporary, conditional exemptive relief for business development companies (BDCs) to enable them to make additional investments in small and medium-sized businesses, including those with operations affected by Covid-19. Among other things, the relief will provide additional flexibility to BDCs to issue and sell senior securities to obtain capital. The relief is subject to certain investor protection conditions.

    Federal Issues SEC Securities Covid-19

  • SEC issues statement on importance of disclosures for investors, markets, and the fight against Covid-19

    Federal Issues

    On April 8, the SEC issued a statement regarding the importance of disclosure for investors, markets, and the fight against Covid-19. Companies are encouraged to issue disclosures that respond to investor interest in the company’s standing, operationally and financially, describe the company’s Covid-19 response, and discuss how the company’s operations and financial condition may change as efforts to fight Covid-19 progress. The guidance also provides specific considerations for quarterly earnings statements and calls, and forward-looking disclosures.

    Federal Issues SEC Disclosures Securities Covid-19

  • Arizona authorizes remote online notarization

    State Issues

    On April 8, Arizona issued an executive order authorizing the use of remote online notarizations. The state had passed legislation legalizing remote online authorization in 2019 and the law was scheduled to take effect on July 1, 2020, but is now in effect due to the Covid-19 crisis.   

    State Issues Arizona Notary Covid-19

  • Washington securities regulator provides relief to franchisors

    State Issues

    On April 8, the Washington Department of Financial Institutions, Securities Division, announced that it would reduce filing fees for franchisors who are unable to timely submit audited financial statements in their year-end disclosure documents due to Covid-19. Fees for the registration of a franchisor that has not included audited financial statements for the most recent year in their required year end franchise disclosure documents are reduced from $600 to $100 in recognition that Covid-19 may impact the ability to obtain or finalize audited financial statements.

    State Issues Covid-19 Washington Banking

  • Colorado banking regulator will not criticize “any” efforts to adjust loan terms

    State Issues

    On April 8, the Colorado Division of Banking issued guidance to state-chartered banks encouraging them to take measures to assist borrowers impacted by Covid-19, including halting foreclosures and providing a 90 day deferment on payment for all consumer loans. The division noted that while state-chartered banks are not required to comply with these requests, any efforts to modify existing loan terms will not be subject to examiner criticism.

    State Issues Covid-19 Colorado Bank Compliance Bank Charter Foreclosure Mortgages Consumer Lending

  • Maine issues executive orders relating to remote notarizations

    State Issues

    On April 8, the Maine governor issued an executive order permitting remote notarization, provided that certain requirements set forth in the order are met. On April 24, the Maine governor issued a subsequent executive order that extends the time period required for certain steps in the remote notarization process. The executive orders will remain in effect until 30 days after the termination of the Covid-19 state of emergency, unless amended or rescinded at an earlier time.

    State Issues Maine Notary Fintech

  • Ohio regulator provides guidance for credit unions

    State Issues

    On April 8, the Ohio Department of Commerce, Division of Financial Institutions issued updated guidance for credit union operations during Covid-19. Among other things, the guidance addresses accommodations for annual and board meetings, branch closures, filing deadlines for call reports, liquidity challenges, and conducting supervisory examinations.

    State Issues Covid-19 Ohio Credit Union

  • Michigan governor issues temporary order enabling remote notarization

    State Issues

    On April 8, Michigan Governor Gretchen Whitmer issued an executive order enabling remote notarization in response to the Covid-19 crisis. Whitmer’s order allows for the use of electronic signatures, remote notarization, remote witnesses and attestations, and remote visitations in necessary transactions and interactions. The order took effect immediately and will be in place through May 6.

    State Issues Covid-19 Michigan Notary Fintech ESIGN

  • SEC issues $2 million whistleblower award

    Securities

    On April 3, the SEC announced an approximately $2 million award to a whistleblower in an enforcement action. According to the SEC’s press release, the whistleblower “provided vital information and assistance that substantially contributed to an ongoing investigation” that would otherwise have “been difficult for the agency to obtain absent the tip.” The formal order also states that the whistleblower “expeditiously reported the information” despite implied threats and suffering hardships, and that the law-enforcement interests in this investigation were high.

    As of April 3, the SEC has awarded 78 individuals a total of approximately $398 million in whistleblower awards since its first award in 2012.

    Securities SEC Whistleblower Enforcement

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