Mitigating The Risks Of Litigation And Enforcement Action: Strategies For Financial Institutions

We have seen an increasing focus on consumer protection in litigation and regulatory activity involving financial institutions.

The COVID-19 pandemic, and the economic volatility and uncertainty it has created, has heightened the attention placed by class action counsel and regulators on the relationship between financial institutions and their clients, and in particular the duties owed by financial institutions. Navigating this exposure will be assisted by keeping a careful eye on corporate conduct which runs the risk of disadvantaging consumers, whether due to conflicts of interest, business practices that do not put customer's interests first or the trickle down impacts of financial services employee misconduct. These areas are a source of litigation and regulatory enforcement action. Proactive risk mitigation will prove essential in the coming months as we manage our way through the second wave of the pandemic.