Worldwide: Financial Services

The SEC's Division of Examinations has escalated Regulation S-P from a stated 2026 priority to active sweep examinations of registered investment advisers, with documenSEC Reg S-P Sweep Exams...

The Seventh Circuit Court of Appeals has upheld the FDIC's authority to adjudicate enforcement actions through administrative proceedings rather than federal court, addressing how the Supreme Court's SEC v. Jarkesy decision applies to banking regulators. The ruling distinguishes between statutory claims with common-law origins and regulatory standards like "unsafe or unsound practices" that have no historical common-law analogue, potentially preserving administrative enforcement powers for federal banking a

Ten states have filed a lawsuit challenging the Office of the Comptroller of the Currency's authority to preempt state laws requiring mortgage lenders to pay interest on escrow accounts. The case tests whether the OCC exceeded its statutory authority under Dodd-Frank by creating federal rules designed to manufacture conflicts with state consumer protection laws. This litigation could fundamentally reshape the balance between federal banking preemption and state regulatory power.

Swiss fund marketing rules differ significantly from EU regimes, offering US fund managers flexibility in pre-marketing activities while imposing specific registration requirements for formal marketing...

Illinois has joined a growing number of states that are expanding fair lending obligations at the state level even as the federal government moves in the opposite direction. On July 31, 2026, SB 3777 became Public Act 104-0744, amending the Illinois Human Rights Act (Act) to prohibit not only intentional discrimination in lending and credit card issuance, but also the use of facially neutral underwriting criteria or methodologies that produce discriminatory effects.

The Digital Asset Market Clarity Act advances in the Senate with a cloture motion filed on August 8, setting up a crucial September vote. Key negotiations continue around defining SEC-CFTC regulatory boundaries, stablecoin rewards, banking custody requirements, DeFi treatment, and market access provisions that could reshape the regulatory landscape for digital assets in the United States.

Illinois has enacted comprehensive legislation establishing a new regulatory framework for buy-now-pay-later lending products, introducing licensing requirements, consumer protection standards, and rate caps that will fundamentally reshape how BNPL providers operate in the state. The Act, which takes effect January 1, 2028, extends credit card-like dispute protections to BNPL transactions while imposing strict underwriting and disclosure obligations on lenders.

On 16 July 2026, the European Court of Justice (ECJ) held that a service consisting of the receipt and forwarding of funds by an intermediary does not constitute a payment service within the meaning of Article 4 no. 3 of Directive 2015/2366 (the Second Payment Services Directive, or PSD2).

The Commodity Futures Trading Commission establishes a new Innovation Advisory Committee while simultaneously issuing guidance on pricing transparency for event-contract derivatives. Meanwhile, the SEC pursues fraud charges against a private fund adviser for alleged misappropriation and undisclosed fees, and a federal court in Connecticut denies Kalshi's attempt to block state gambling law enforcement.