The Financial Stability Oversight Council (FSOC) issued its annual report at the end of June, the sixth since the FSOC began issuing reports under Dodd-Frank. Notably, however, this was the first report to address the emergence of Fintech. In particular, the FSOC highlighted distributed ledger systems and marketplace lending as developing sources of concern. The FSOC did not prescribe actions to be taken at this time, but with regard to marketplace lending suggested that regulators need to be watchful and monitor its effect on overall lending standards in the industry. The FSOC’s concern about marketplace lending is consistent with indications from the OCC in recent months that the market can expect digital payment systems and marketplace lending to be top priorities as regulatory oversight of Fintech increases.
For more information about the FSOC’s report generally, please see Financial Stability Oversight Council Releases 2016 Annual Report.