On July 31, 2018, the Office of the Comptroller of the Currency (OCC) announced that the OCC will begin to accept special-purpose charter applications from fintech firms.
Type: Client Alerts
The OCC announcement followed a decision by the Treasury Department backing the OCC’s fintech charter concept set out in a recently published Treasury report recommending changes in the financial industry regulatory regime. Until now, fintech companies did not have a federal licensing option, and instead had to apply for licenses in each state in which they wished to operate. With the Treasury Department decision and the OCC’s announcement, the need for state-by-state licenses for those fintech entities that qualify is effectively eliminated, reducing not only regulatory burdens facing a company, but also potentially hefty costs that could hinder a company from moving forward in its business endeavors.