Understanding and Mitigating Regulatory Risk in Consumer Financial Transactions: Effective Diligence Strategies
Recent economic conditions and financial innovation present opportunities to investors in consumer financial services companies and consumer loans and receivables. Yet regulatory risks in consumer financial services products are often complex, substantial and varied, even after accounting for recent efforts at the federal level to ease regulatory compliance burdens.
This briefing will highlight aspects of pre-transaction diligence that can help investors and other secondary market participants identify and mitigate consumer financial regulatory risk. Topics will include:
- The importance of diligence reviews and the types of risks that can be assessed and mitigated;
- Scoping reviews for efficiency based on transaction structure, consumer financial asset class and other relevant factors;
- Leveraging existing internal and external audits or reports during regulatory diligence reviews; and
- Strategies for risk mitigation based on diligence findings, including determining the transaction structure, eligibility criteria and pre- and post-closing compliance conditions.
For additional information about this event, please contact Liz Whitley at firstname.lastname@example.org or +1 202 263 3092.