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ARTICLE · 26 DECEMBER 2024

Compliance Covenants In Fintech Investment Side Letters

Fintech companies that partner with banks to deliver financial products and services can be among the most compliance-fortified financial services companies.

United StatesTechnology

Fintech companies that partner with banks to deliver financial products and services can be among the most compliance-fortified financial services companies. A fintech with a lending solution can operate with at least seven lines of compliance defense:

Seven Lines of Compliance Defense

First: The fintech's own internal compliance function, which does the lion's share of the compliance work: the work-up of the program's products and services and ongoing compliance.
Second: The fintech's outside counsel, which provides compliance support to the fintech and is often called on to advise on complex legal questions presented in the fintech's development of program products and services

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