This package includes the recordings and program materials from the 2024 Financial Services Network Legal Updates.
The Financial Services Network (FSN) is comprised of an amazing base of in-house counsel from a diverse set of corporations with collective expertise covering a broad range of financial services practice areas. The FSN Executive Leadership strives to provide members with highly-relevant programming focusing on cutting-edge legal and regulatory developments, practical resources and information sharing platforms designed to facilitate the delivery of top-notch legal services to business partners. In addition to content, we also host informal events and professional development opportunities to allow members to make real-time connections and foster a sense of community among in-house practitioners.
This is one of the most activist FTCs in decades, with a flurry of rulemaking and big tech litigation, and they haven’t forgotten about financial services.
This is one of the most activist FTCs in decades, with a flurry of rulemaking and big tech litigation, and they haven’t forgotten about financial services.
We heard from Baker Hostetler Partner, Amy Mudge, who has 25 years of experience defending FTC investigations. She’ll brought you up to date on the latest including giving updates on the:
Amy Ralph Mudge, leader of BakerHostetler’s Advertising, Marketing and Digital Media team, has successfully counseled major advertisers through bet-the-company enforcement investigations and competitor challenges for more than 20 years. She is a Band One Chambers USA-ranked advertising regulatory and NAD lawyer, and a respected thought leader in the advertising law field.
Amy routinely represents top-tier companies before the Federal Trade Commission (FTC), the National Advertising Division (NAD) and the Children’s Advertising Review Unit (CARU), as well as in private, federal and state class action defense, consumer protection and antitrust litigation. From the nation’s best-known food brands, major toy manufacturers and health and wellness names to digital media influencers, cutting-edge Internet companies and consumer products giants, the range of industries in which Amy counsels reflects the strength and breadth of her practice.
A comprehensive counsel, Amy is also skilled at establishing effective compliance programs as well as providing antitrust and marketing law training. Her work includes counseling in all manner of endorsements, including native advertising, influencers, consumer reviews and review websites; the emerging use of AI in advertising; the advertising of NFTs; loyalty programs; e-commerce website and app design, including avoiding dark patterns; subscription marketing; social media marketing; green marketing and environmental, social and governance (ESG) commitments; marketing to children; “Made in USA,” health claim substantiation and other claim support requiring competent and reliable scientific evidence; comparative advertising; pricing claims; and email and text message marketing.
The U.S. Department of Labor published a final rule on January 9, 2024, defining "independent contractor" under the Fair Labor Standards Act (FLSA). The final rule went into effect on March 11, 2024. The final rule rescinds a 2021 rule defining the same term, and in its place, adopts a six-factor test focused on the "economic reality" of the relationship between a potential employer and a worker. The test asks whether, as a matter of economic realities, the worker depends on the potential employer for continued employment or is operating an independent business.
The U.S. Department of Labor published a final rule on January 9, 2024, defining "independent contractor" under the Fair Labor Standards Act (FLSA). The final rule went into effect on March 11, 2024. The final rule rescinds a 2021 rule defining the same term, and in its place, adopts a six-factor test focused on the "economic reality" of the relationship between a potential employer and a worker. The test asks whether, as a matter of economic realities, the worker depends on the potential employer for continued employment or is operating an independent business.
In this legal update, the panel explored and explained the DOL's six-factor test, and discussed:
Implications on businesses who utilize contractors
How it intersects with FDIC Section 19
Predictions on the future of litigation on contractor classifications
Allison C. Williams represents and advises employers on all matters of labor and employment law in state and federal court as well as in investigations and audits conducted by governmental agencies. Her practice focuses on class and collective action wage and hour disputes as well as single-plaintiff discrimination, harassment, and retaliation claims. Allison represents clients against claims including:
Misclassification as independent contractors
Misclassification as exempt from overtime
Failure to pay overtime and/or minimum wage under the Fair Labor Standards Act (FLSA)
Discrimination, harassment, and retaliation claims under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, and the Age Discrimination in Employment Act
Employment-related common law claims under Texas law, including breach of contract, fraud and fraud in the inducement, promissory estoppel, unjust enrichment
Failure to comply with wage and hour obligations under California state law
Violation of the Uniformed Services Employment and Reemployment Rights Act (USERRA)
In addition to representing clients in litigation, Allison represents clients during investigations conducted by the U.S. Department of Labor, the Equal Employment Opportunity Commission, the Texas Workforce Commission, the California Department of Fair Employment and Housing, and the California Division of Labor Standards Enforcement.
Before joining Littler, Allison interned with the Hon. Magistrate Judge Calvin Botley of the U.S. District Court, Southern District of Texas. After graduating from law school, she was a litigation associate at another national law firm in Texas where she represented state employers against Section 1983 claims, wrongful termination, failure to protect, failure to train, and negligent hiring claims. She also represented employers in various maritime disputes, including claims for maintenance and cure.
Ben Sandahl counsels and advocates for management facing a wide variety of workplace issues. His practice encompasses many areas of labor and employment law for a diverse range of companies, from large publicly traded corporations to small nonprofit organizations, all in a variety of industries. Ben practices in all areas of labor and employment matters, and has a particular focus on independent contractor classification litigation and analysis.
Ben regularly advises clients before litigation arises with the goals of avoiding litigation where possible and advantageous positioning should litigation arise. He litigates individual, class, and collective claims of all types, appearing in state and federal courts and before administrative agencies throughout the country.
Prior to joining Littler, Ben worked at another national law firm, winning the then-largest judgment in the history of Illinois
Abby L. Bochenek represents and advises employers in a broad range of employment matters before federal and state courts and administrative agencies, with an emphasis on class and collective matters and mass actions. Abby’s experience handling complex matters spans the wage and hour and employment discrimination areas. She has specific knowledge and experience in issues relating to class and collective action certification and decertification under Fair Labor Standards Act Section 216(b) and Federal Rule of Civil Procedure 23.
In addition to representing employers in class and collective action litigation and other complex employment litigation, Abby regularly defends clients against single plaintiff and multi-plaintiff actions alleging claims under the Fair Labor Standards Act, Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Age Discrimination in Employment Act, and state and local wage and hour and anti-discrimination statutes.
Abby often works with clients in the following industries:
Restaurant and hospitality
Chemicals and food safety
Waste disposal
Gig economy
Transportation, including airline and railroad
In addition to representing clients in litigation, Abby provides counselling on employment and separation agreements and employment policies, practices and procedures. She also frequently provides virtual and in-person EEO trainings.
Prior to joining Littler, Abby was an associate at an internationally recognized boutique employment law firm. During law school, Abby earned her Certificate in Litigation and Alternative Dispute Resolution and interned for the Law Offices of Chicago-Kent’s Employment and Civil Rights Clinic. She was elected as the president of the Society of Women in Law and inducted into the prestigious Bar and Gavel Society. Prior to attending law school, Abby worked as a media buyer and planner for an international media agency.
The presenters will discussed the increasing regulatory focus on assessing discrimination and potential fair lending risks associated with AI, including recent efforts by the Consumer Financial Protection Bureau to use adverse action requirements to promote greater transparency in AI models and shine a light on risks associated with non-traditional data elements in models used by financial institutions. The presenters also explored implications of the Biden Administration’s recent Executive Order on AI, new legislation and regulatory actions at the state level on AI consumer protections, and related data privacy and cybersecurity issues in the U.S. and from a global perspective. Industry best practices and steps that financial institutions can take to mitigate risks associated with AI were also discussed.
Regulators and industry participants across the consumer financial services sector are continuing to grapple with the opportunities and risks associated with the sharp rise of artificial intelligence and machine learning (“AI”). U.S. federal financial regulators have yet to implement comprehensive regulations governing AI, and have provided limited guidance as to how existing requirements apply to these emerging technologies. The presenters discussed the increasing regulatory focus on assessing discrimination and potential fair lending risks associated with AI, including recent efforts by the Consumer Financial Protection Bureau to use adverse action requirements to promote greater transparency in AI models and shine a light on risks associated with non-traditional data elements in models used by financial institutions. The presenters also explored implications of the Biden Administration’s recent Executive Order on AI, new legislation and regulatory actions at the state level on AI consumer protections, and related data privacy and cybersecurity issues in the U.S. and from a global perspective. Industry best practices and steps that financial institutions can take to mitigate risks associated with AI were also discussed.
Mr. Welch’s practice focuses on fair lending; laws governing unfair, deceptive or abusive acts or practices; sales practices risk; credit reporting; information privacy; and a wide variety of other consumer financial protection issues. His practice also includes transactional diligence; securities, class action and general litigation; statistical model review; safety and soundness examinations and enforcement; bank receivership director and officer litigation and enforcement; and internal investigations.
Mr. Welch represents clients before the U.S. Department of Justice, the Consumer Financial Protection Bureau, the U.S. Department of Housing and Urban Development, the Federal Trade Commission, federal banking regulators and state attorneys general. Among his notable recent representations are:
Wells Fargo Bank in connection with an inquiry by the Consumer Financial Protection Bureau regarding sales practices, and other banks in sales practices examinations by the Office of Comptroller of the Currency and other regulators
Capital One in connection with a federal lawsuit regarding branch closures in Texas
Credit Acceptance Corp. in a lawsuit by the Mississippi attorney general regarding the origination and servicing of automobile finance contracts
mortgage loan investors in connection with fair lending testing of their portfolios and models
a model developer regarding model governance processes and model reviews
investors and financial advisors in connection with debt and equity transactions related to emerging fintech participants
bank officers and directors in investigations and litigation commenced by the Federal Deposit Insurance Corporation
Mr. Welch has lectured and published on various topics, including consumer financial services litigation and enforcement, consumer compliance risk management, fintech developments and the Dodd-Frank Act.
Formerly a Pentagon special counsel and chief cyber counsel to the U.S. Cyberspace Solarium Commission, Mr. Simon regularly assists clients as the lead investigator and crisis manager for high-stakes, cross-border incidents involving cyberattacks, data breaches and extortion, and AI, and handles related internal investigations and regulatory defense.
Mr. Simon has dealt with some of the most significant cyber incidents on an international scale. His experience includes advising victims of state-sponsored cyber activity, ransomware and other cyber extortion attacks, as well as breaches of health information, sensitive government information, intellectual property and personal data. Dual qualified to practice in the U.S. and the EU, he often represents global companies in connection with cyber incidents requiring analysis of breach reporting obligations under U.S. and EU law, including the EU General Data Protection Regulation (GDPR) and investigations by European data protection authorities. He has counseled companies on major cyber incidents and incident preparedness across virtually every industry, including financial, health care, energy, chemical, defense and aerospace, telecommunications and hospitality.
Mr. Simon is known as a go-to cyber and privacy counsel to leading global private equity sponsors and their portfolio companies, stepping in to serve as cyber counsel and incident commander when portfolio companies face ransomware or other disruptive cyberattacks. He frequently counsels boards, C-level executives and other management as they address cyber vulnerabilities and breaches, and manage associated legal, regulatory and reputational consequences. In recent years, Mr. Simon has convened regular roundtables with CISOs, CIOs and CTOs from leading global private equity firms and their portfolio companies to assess trends and risk management strategies concerning cybersecurity, AI and privacy.
Join us for an illuminating presentation where we explore the intricate landscape of FTC regulations and their implications for financial services companies in the United States.
Join us for an illuminating presentation where we explore the intricate landscape of FTC regulations and their implications for financial services companies in the United States.
This comprehensive session will explore the critical question of where and when the FTC exercises jurisdiction over such entities, shedding light on the boundaries of its authority and the compliance obligations it entails. Additionally, we'll cover the consequential impact on businesses even when the FTC lacks jurisdiction, illuminating the need for proactive measures to navigate other regulatory frameworks effectively. Furthermore, we'll examine the roles of alternative agencies in enforcing bans where the FTC's reach doesn't extend, providing invaluable insights for businesses operating in this sector. Finally, we'll address the current legal challenges and landscape surrounding FTC regulations, offering strategic guidance to anticipate and address potential compliance hurdles.
Don't miss this opportunity to gain a comprehensive understanding of FTC jurisdiction, its implications, and proactive strategies to safeguard your business interests in an evolving regulatory landscape.
Kate Perrelli is a member of the firm's executive committee, the co-chair of the firm’s national Trade Secrets, Computer Fraud & Non-Competes group, and the co-chair of the ABA Committee on Trade Secrets and Interference with Contracts.
Mike Wexler is a member of the Partner Board, co-chair of the Trade Secrets, Non-Compete and Computer Fraud practice group, chair of the Chicago Litigation department and a member of the firm’s Lawyer Development Committee.
Jesse Coleman is a member of the Trade Secrets, Non-Compete and Computer Fraud practice group co-chair of the Health Care, Life Sciences, and Pharmaceuticals practice group.
Cooley partners Michelle Rogers and Teresa Michaud will discuss the Consumer Financial Protection Bureau (CFPB)’s 2024 report which examined the growth and privacy risks of financial transactions in online video games and virtual worlds, and the increasing litigation risk in this space. This presentation will cover the key findings profiled in the report, the increasing litigation activity in this space, and how this impacts the industry.
Cooley partners Michelle Rogers and Teresa Michaud will discuss the Consumer Financial Protection Bureau (CFPB)’s 2024 report which examined the growth and privacy risks of financial transactions in online video games and virtual worlds, and the increasing litigation risk in this space. Regulators, including the CFPB, are sharpening their focus on the ways gaming services can resemble traditional financial products, with particular focus on the compliance management controls and infrastructure (or lack thereof) applicable to online transactions in nontraditional marketplaces. This presentation will cover the key findings profiled in the report, the increasing litigation activity in this space, and how this impacts the industry.
Michelle is a highly respected financial services litigation and government enforcement lawyer. She is a trusted adviser to and first call for financial institutions in high-stakes litigation and enforcement matters, including government investigations, regulatory examinations, class action and complex litigation, and internal investigations. She is known for providing thoughtful and practical advice. Michelle’s clients appreciate her deep understanding of complex regulatory issues and ability to translate those concepts into operational terms, as well as her proactive approach to problem solving. A tireless advocate for her clients, Michelle is recognized in the industry for her experience and strategic thinking.
Teresa is an accomplished litigator who represents industry-leading companies on a range of cutting-edge disputes, including complex business disputes, class actions, intellectual property and international arbitration. Her practice focuses primarily on complex cross-border issues for the technology industry, and she has earned significant, precedent-setting wins on novel theories of liability for platforms, software, ecommerce and gaming companies. Throughout her multi-jurisdictional career, Teresa has successfully defended clients in courts and tribunals across the United States, England, Hong Kong and Singapore. She has managed contract and business tort disputes; consumer class actions involving consumer protection, false advertising, unfair business practices, data privacy and breach actions, wiretapping, and anti-gambling laws; copyright and trademark disputes; trade secret misappropriation; Section 230 of the Communications Decency Act; and the defense of other statutory and common law claims.
Litigation Partner & Global Co-Chair of Investigations and White Collar Defense
Paul Hastings LLC
Allyson Baker serves as the Global Co-Chair of the Investigations and White Collar Defense practice at Paul Hastings, Co-Chair of the firm’s litigation practice in Washington, D.C., and as a partner in the Fintech & Payment and Investigations & White Collar Defense practices. Ms. Baker is a trial attorney, civil litigator, and counselor with significant experience in the federal government and private practice. She represents consumer finance companies and individuals in confidential, non-public investigations initiated by the Consumer Financial Protection Bureau’s (CFPB) Office of Enforcement, state attorneys general, the Federal Trade Commission (FTC), state banking agencies, and the Department of Justice (DOJ).
She also serves as litigation counsel for financial services companies, advises on consumer financial laws, and provides strategic and risk management counsel to consumer finance companies dealing with the CFPB and other federal and state law enforcement and regulatory agencies.
Of Counsel, Litigation, Investigations and White Collar Defense
Paul Hastings LLP
Erin Zacuto Cass is of counsel in the Fintech & Payments and Investigations & White Collar Defense practices of Paul Hastings and is based in the firm’s Washington, D.C. office. She represents financial services companies and individuals in confidential federal and state investigations, including the Consumer Financial Protection Bureau (CFPB), the Federal Trade Commission (FTC), state attorneys general, and state banking agencies, and in related litigation. Ms. Cass counsels finance companies and individuals in identifying risks and adhering to regulatory requirements with respect to consumer protection laws.
Ms. Cass previously served as a law clerk for the Honorable Patrick L. Woodward of the Court of Special Appeals of Maryland and the Honorable Ronald B. Rubin of the Circuit Court for Montgomery County, Maryland. Prior to attending law school, Ms. Cass worked as a paralegal specialist at the United States Attorney’s Office for the Central District of California.
Professionals from the Menninger Clinic will address common mental health issues that arise in the legal practice and ways to prevent, recognize, and treat them.
Professionals from the Menninger Clinic will address common mental health issues that arise in the legal practice and ways to prevent, recognize, and treat them.
This presentation will include experiential techniques, such as guided meditation and a mindfulness exercise. We’ll take a deeper look into the following topics:
Neurobiology of Stress and Maladaptive Responses
Self-Compassion and Shame Resilience as Adaptive Responses to Stress
Medical Director, Addictions Services Associate Professor, Menninger Department of Psychiatry & Behavioral Sciences
Baylor College of Medicine
Board-certified in addiction psychiatry and adult psychiatry, Daryl Shorter, MD, is the medical director of Addictions Services at Menninger and also works in Outpatient Assessments. He is also an associate professor in the Menninger Department of Psychiatry & Behavioral Sciences at Baylor College of Medicine.
Prior to his arrival at Menninger, Dr. Shorter served as an attending psychiatrist at the Michael E. DeBakey Veterans Administration Medical Center in Houston.
His research has been published in numerous peer-reviewed journals, including the American Journal of Addictions, Journal of Psychiatric Practice, Addiction Biology, American Journal of Drug and Alcohol Abuse and Journal of Neuropsychiatry and Clinical Neurosciences. He also has contributed to chapters in books such as Biologics to Treat Substance Use Disorders: Vaccines, Monoclonal Antibodies, and Enzymes, Reference Module in Neuroscience and Biobehavioral Psychology and ASAM Principles of Addiction Medicine.
Staff Psychologist and Youth Division Coordinator Assistant Professor, Menninger Department of Psychiatry & Behavioral Sciences
Baylor College of Medicine
Kerry Horrell, PhD, is a staff psychologist on Menninger's Compass Program for Young Adults as well as the coordinator of the Youth Division. In addition, she is the co-host of Mind Dive, Menninger's podcast for mental health professionals. She is also an assistant professor in the Menninger Department of Psychiatry & Behavioral Sciences at Baylor College of Medicine (BCM).
Her clinical expertise includes the treatment of shame, trauma and attachment issues, with a particular focus on self-compassion, mentalizing and psychodynamic psychotherapy.
Her research interests include experiences of gender and sexuality, as well as religion and spirituality, in how they relate to mental health and well-being. Her research has been published in the Journal of Psychology and Theology and has been shared at the annual conference of the Association of Psychological Science.
Although Valerie Fayle, JD, CPRS, LMSW, has more than 20 years of experience as a lawyer, she now serves as an associate addictions counselor at The Menninger Clinic, where she previously served as a peer recovery specialist. She has been in recovery for more than 10 years and was the recipient of the 2019 Spirit of Social Work Award.
She earned an undergraduate degree in History and Politics from Washington & Lee University, and a law degree from the South Texas College of Law. Valerie is a member of the State Bar of Texas, the Texas Lawyers Assistance Program and Texas Lawyers Concerned for Lawyers.
Sonia Roschelli, LCSW-S, LCDC, is director of Addictions and Recovery Servicesat Menninger. She has expertise in evidence-based practices for co-occurring disorders and is skilled in working with adolescents, adults and families at inpatient and outpatient levels of care. Sonia has completed advanced training in acceptance and commitment therapy, motivational interviewing and other mindfulness and self-compassion-based approaches to treatment.
Roschelli is a member of the National Association of Social Workers, Texas Association of Addiction Professionals and NAADAC, the Association for Addictions Professionals. She has given presentations locally and nationally about treating co-occurring disorders and mindfulness and acceptance-based approaches to treatment.
A panel of experts will provide a general overview of AI (what it is, its various stages of complexity, and its risks and benefits), as well as a current snapshot of AI regulation and the focus of U.S. financial regulators in this space.
A panel of experts will provide a general overview of AI (what it is, its various stages of complexity, and its risks and benefits), as well as a current snapshot of AI regulation and the focus of U.S. financial regulators in this space. The team will then dive into the specifics of the Colorado AI Act, including its scope, key terms, prohibited practices, and key takeaways. The panel will close with a discussion of the implications of this Act for financial institutions, including best practices for AI governance, and more.
Ginevra is a partner in the firm's Financial Industry Group. Ginevra’s litigation practice focuses on complex class and individual actions in the banking, consumer finance, employment, investment management, and managed care industries. Ginevra’s wide-ranging litigation expertise includes claims brought under various federal and state consumer protection statutes, the CARES Act, and ERISA, and claims involving sales tax collection disputes. Ginevra has extensive experience managing complex discovery matters in federal and state court litigation across the country, including matters that involve large-scale ESI. Ginevra also has deep experience advising clients on garnishments and setoffs, leading a team of attorneys to provide risk management and compliance counselling to multiple national and regional bank clients in this space.
Natsayi is a partner in the firm's Financial Industry Group with experience litigating complex commercial matters. Natsayi works with teams tasked with defending national putative class actions, ranging from class actions related to consumer financial services to biometric class actions under the Illinois Biometric Information Privacy Act. She has experience in complex litigation matters, ranging from fee disputes to lender liability to consumer fraud to contractual disputes to violations of federal and state consumer protection statutes. She also provides risk management counseling to clients in the garnishments and setoffs space.
Mark advises clients on privacy, data security, and consumer protection issues faced by companies engaged in today’s increasingly complex and interconnected world. As an experienced litigator, he represents clients faced with government investigations and civil litigation, including consumer class action litigation, related to privacy and cybersecurity matters at the state and federal levels. Mark frequently practices before the Federal Trade Commission (FTC) and other federal agencies. Mark is also experienced in legal and policy matters involving State Attorneys General and works with clients to help them avoid becoming the targets of state and multi-state investigations, and to resolve related inquiries before they result in litigation.
Don't let the year end without catching up on the updates to the GLBA Rules.
Rocio Baeza will be delivering a 3 part series to highlight areas that financial services needs to focus on.
Don't let the year end without catching up on the updates to the GLBA Rules.
Rocio Baeza will be delivering a 3 part series to highlight areas that financial services needs to focus on.
In this first session, attendees will learn:
The new requirements created by updates to the Safeguards and Privacy rules
The significant changes that the experienced attorney may have missed
The required reporting that your company needs to satisfy by Dec 31, 2024
Rocio was an active contributor in the proposed changes to the GLBA Safeguards Rule, to ensure that the changes were clear and actionable to FinTechs that don't yet have an in-house CISO.
Rocio is the CEO and founder of CyberSecurityBase, a data security and privacy consultancy supporting FinTechs. GCs hire CyberSecurityBase to design and implement robust information security programs that expect to be scrutinized by bank partners. Rocio's background includes 16 years in small-dollar lending/FinTech and 11 years in cybersecurity.
Rocio has actively participated in proposed rulemaking/updates activity initiated by the FDIC, OCC, FRB, and CFPB, including the “Interagency Guidance on Third-Party Relationships: Risk Management”.
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Recorded On: 03/27/2024
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Recorded On: 07/24/2024
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Recorded On: 09/25/2024
