Writing in the American Banker today, Florida Office of Financial Regulation Commissioner Drew Breakspear highlights the many problems associated with the OCC’s federal Fintech charter plan:
“The Florida Office of Financial Regulation has staff across the state who work tirelessly to ensure that we meet the needs of those we regulate and consumers. In Florida, our licensees and state-chartered institutions value their direct access to local regulators who know and can be responsive to the state’s markets and economic trends.
“But that understanding of community needs is lost when regulatory authority is channeled through a single federal regulator located far from the delivery of services.
Breakspear also discusses the dangers of providing a regulatory advantage to larger firms, who will most likely be the only ones capable of obtaining an OCC charter:
“If the OCC charter provides regulatory advantages, then it will only be the firms that can absorb such costs that will benefit. It may help large players, but would be stifling to small businesses. Startups, such as Facebook, are often launched in college dorms. Would they get off the ground today if they had to compete with larger, federally licensed firms with such an advantage?”
Read the full article here.