US state financial regulators are to renew their litigation efforts over the recent decision by the Office of the Comptroller of the Currency to create a special purpose charter for financial technology firms.
It's the second time that the Conference of State Bank Supervisors (CSBS) has filed suit against OCC. A previous attempt was dismissed by a federal court judge as the OCC had not yet committed to the programme.
With the OCC’s 31 July announcement creating a federal fintech charter, the CSBS Board has decided to reaffirm its commitment to challenge the OCC's action.
The CSBS alleges that the OCC is over-reaching its authority in granting charter status to non-banks.
John Ryan, CSBS president and CEO, states: “If the OCC is allowed to proceed with the creation of a special purpose nonbank charter, it will set a dangerous precedent that any federal agency can act beyond the legal limits of its authority. We are confident that we will prevail on the merits.”