b'to deliver comprehensive disclosures to commercialand its subsidiaries, (iv) limiting the parent companys financing recipients regarding the amount, pricing,representation on the ILCs board of directors to 25%, and other transaction terms. S5470B was signed byand (v) subjecting each ILC to an independent audit. Governor Cuomo on December 23, 2020, and ArticleAdditionally, the proposed rule would require the FDICs 8 will become effective on or around June 21, 2021.prior written approval before an ILC subsidiary of a Eachviolation of Article 8 could result in civil monetaryparent company may make a number of changes to its penalties of up to $10,000.corporate structure or business plan. The proposed rule would allow the FDIC to impose additional restrictions on FDIC Proposed Rule: Parent Companies of Industrialthe parent company on a case-by-case basis. Banks and Industrial Loan Companies In March, the Federal Deposit Insurance CorporationCFPBs Advance Notice of Proposed Rulemaking: (FDIC) issued a notice of proposed rulemaking thatAccess to Financial Recordswould require certain conditions and commitmentsIn October, the CFPB issued an advance notice of for each deposit insurance application approval,proposed rulemaking (ANPR) related to consumer non-objection to a change in control notice, andaccess to financial records. The ANPR solicited merger application approval that would result in ancomments and information to assist the CFPB in insured industrial bank or industrial loan companydeveloping regulations to implement section 1033 (each, an ILC) becoming, after the effective date ofof the Dodd-Frank Act, which provides, in relevant any final rule, a subsidiary of a company that is notpart, that a consumer financial services provider subject to consolidated supervision by the Federalmust make available to a consumer information in Reserve Board (each, a Covered Parent Company).the control or possession of the provider concerning The proposed rule would prohibit any ILC fromthe consumer financial product or service that the becoming a subsidiary of a Covered Parent Companyconsumer obtained from the provider. Specifically, unless the Covered Parent Company enters intothe ANPR seeks comments and information on costs one or more written agreements with the FDIC andand benefits of consumer data access, competitive its subsidiary ILC. The parent company would needincentives, standard-setting, access scope, consumer to agree to a variety of requirements, including (i)control and privacy, and data security and accuracy. furnishing an initial listing, with annual updates, of theThe CFPB identifies Fintech firms as companies that parent companys subsidiaries, (ii) consenting to thehave been accessing consumer data with authorization examination of the parent company and its subsidiaries,and providing services to consumers using data (iii) submitting an annual report on the parent companyfrom the consumers financial accounts. Although it 22'