Blog: Astorg and Bridgepoint acquire financial software company Fenergo – Private Equity Wire

Astorg and Bridgepoint are to acquire Fenergo’s management team to acquire Fenergo, a provider of Know-Your-Customer (KYC) and Client Lifecycle Management (CLM) software solutions for financial institutions, from Insight Partners. 

The acquisition follows a period of strong expansion for Fenergo and will drive investment in the firm’s SaaS strategy, product line development and support an expanding team through the next phase of growth.

Established in 2009, Fenergo’s award winning SaaS platform provides solutions to the world’s largest and most complex financial institutions, helping to fight financial crime and to enhance customer journeys while being compliant every step of the way. Fenergo currently helps top financial institutions including ICBC Standard Bank, Santander, Mizuho, ABN AMRO and BNP Paribas to digitally transform their end-to-end client lifecycle processes. Fenergo’s API-first ecosystem of channels, systems and data providers enables financial institutions to offer a truly frictionless customer experience.

The company operates in a specialised part of the highly regulated financial services sector, with strong potential for continued growth given the increasing importance of digitalisation and compliance. In the financial year ending March 2021, Fenergo’s revenue increased by 17 per cent to USD107 million.

Marc Murphy, Founder and CEO, Fenergo, says: “We are delighted that Astorg and Bridgepoint have chosen to invest in our company, providing us with the financial strength required to pursue our ambitious high-growth strategy. Both Astorg and Bridgepoint have enormous experience and credibility in our sector, something I am keen to leverage over the coming years. Ultimately, we only exist to serve the needs of our customers. We are looking forward to partnering with them in the next phase of our development.”

Benoît Ficheur, Partner in charge of growth investments at Astorg, says: “We have tracked Fenergo for many years and have been impressed with its strong market position, innovative technology and consistent strong positive feedback from a customer base of large financial institutions. We are thrilled to partner with Bridgepoint to help shape the future of this unique company. Marc Murphy and his team have proven their strength year after year in this very demanding industry. This investment confirms our commitment to backing fast-growing and innovative software leaders.”

David Nicault, Partner responsible for Bridgepoint’s investment activity in technology, says: “We are delighted to partner with Astorg on the exciting next phase for Fenergo. Continued pressure on financial institutions to improve their compliance work, while at the same time managing margins and increased regulation, has created the need for integrated digital solutions that enable reduced operating costs, improve capital allocation and comply with regulations. We are looking forward to working closely with the management team at Fenergo as they build on the company’s success to date and realise its full growth potential.”

Blog: FCA sends thousands of staff on cyber and financial crime training courses – Institutional Asset Manager

The Financial Conduct Authority (FCA) has sent 4,430 of its employees on compulsory cyber and information security courses over the past two financial years – (FY 19-20 and FY 20-21) – to help combat the growing threat of financial crime, such as money laundering and fraud, according to official figures.

This data was obtained via The Parliament Street think tank under the Freedom of Information (FOI) Act. The FCA revealed that as well as the ‘Cyber and Information Security’ eLearning course, which is compulsory for all staffers to complete, 217 participants were also enrolled into locally organised security courses for more advanced training.
 
The additional training courses included Cyber Security training with a Counter Threat Unit; Software and Cyber Security development programmes, and additional courses titled ‘The Cyber Security Degree: the Next Step in Cyber’, and ‘The First Byte’.
 
It is unclear how many of the total attendees for the locally organised training courses had attended multiple sessions, or what the programmes specifically involved.
 
Regulation expert Wayne Johnson, CEO, Encompass Corporation, says: “Investing in the latest cyber skills training is essential, especially for an organisation tasked with investigating financial crime, money laundering and upholding regulatory standards.
 
With a surge in newly launched FinTechs, alongside expanding traditional banks, the FCA has a complex remit that requires the highest technical skills in order to investigate and enforce.
 
This data also shows the huge investment regulatory authorities are putting in place to hold organisations to account.
 
For banks, financial services firms, and start-up FinTech companies, a failure to follow strict AML and KYC rules could lead to severe financial penalties, so getting compliance right from the outset is a must.
 
Key to this effort should be investing in the latest solutions to easily automate KYC, while understanding and adhering to evolving financial regulations, to allow the organisation to grow without fear of breaching mandatory compliance legislation.”
 
 

Blog: Experienced corporate lawyer joins Haynes and Boone – Private Equity Wire

Veteran deal lawyer Jason K Zachary has joined Haynes and Boone, LLP as a partner in the firm’s Corporate Department and a member of the Capital Markets and Securities, Mergers & Acquisitions and Private Equity Practices. 

Zachary will split time between the firm’s Denver and New York offices and will be an important part of the firm’s growth initiatives on the west coast.
 
Zachary regularly advises boards of directors and senior management of corporate clients, as well as private equity and venture capital investment funds and their portfolio companies in a range of complex business transactions and corporate governance issues. His practice encompasses diverse securities matters, including various exempt and hybrid offerings such as PIPEs and registered direct offerings, and mergers and acquisitions, including leveraged buyouts, divestitures, growth equity investments and corporate restructurings. He works with middle-market focused clients in a variety of industries, including business services, software, technology, manufacturing services, healthcare, and consumer products, among others.
 
“Jason has incredibly broad experience having represented companies and private equity firms in many industries across the country,” says Dan Malone, administrative partner of Haynes and Boone’s Denver Office and a partner in the firm’s Corporate and Private Equity Practice Groups. “He will provide tremendous value to our clients because of the breadth of his skillset and his ability, honed by his experience as an in-house counsel, to consummate transactions in a way that efficiently achieves his clients’ strategic goals.”  
 
Zachary previously was a shareholder in the Denver office of Greenberg Traurig, LLP and served as senior securities counsel – securities and corporate governance at Vail Resorts, Inc, a New York Stock Exchange-listed company. Prior to relocating to Denver, he was a partner at Kirkland & Ellis LLP in New York City. A native of Texas, he graduated with a BBA in Finance from Texas A&M University, and received his JD, with honours, from Chicago-Kent College of Law, and his LLM in Securities and Financial Regulation, with distinction, from the Georgetown University Law Center.
 
“I was drawn to Haynes and Boone because of the collaborative nature of its culture, its deep roots in M&A and private equity, and the growth it has enjoyed in Denver and on the east and west coasts,” Zachary says. “I am thrilled to be part of such a dynamic firm.”
 

Blog: Daily Financial Regulation Update — Saturday, May 15, 2021 – Lexology

PH Client Alerts

Click here to read more from our Coronavirus series.

Administration Changes

Appointments/Confirmation Hearings

Department of the Treasury – Janet Yellen (effective January 26, 2021)

Consumer Financial Protection Bureau – Rohit Chopra (Nominee)

Securities and Exchange Commission – Gary Gensler (effective April 17, 2021)

Small Business Administration – Isabel Guzman (effective March 16, 2021)

Commodity Futures Trade Commission

Financial Crimes Enforcement Network

National Credit Union Administration – Todd M. Harper

Department of Housing and Urban Development – Marcia Fudge (effective March 10, 2021)

Department of Education – Dr. Miguel Cardona (effective March 2, 2011)

Congress

Click here to view the full text of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), Enacted March 27, 2020.

Click here to view the full text of the Paycheck Protection Program Increase Act of 2020, Enacted April 24, 2020.

Click here to view the full text of the Paycheck Protection Program Flexibility Act of 2020, Enacted June 5, 2020.

Click here to view the full text of the Consolidated Appropriations Act, 2021, Enacted December 27, 2020.  

Click here to view the full text of the American Rescue Plan of 2021, Enacted March 11, 2021.

Click here to view the full text of the PPP Extension Act of 2021, Enacted March 30, 2021.

Click here to view a running list of proposed legislation from the Senate Committee on Banking, Housing, and Urban Affairs, Senate Committee on Small Business and Entrepreneurship, House Committee on Financial Services, and House Committee on Small Business.

Federal Agencies

U.S. Department of the Treasury

Remarks by Secretary Janet L. Yellen at the Pontifical Academy of Sciences and the Pontifical Academy of Social Sciences Event Dreaming of a Better Restart

May 14, 2021

U.S. Department of the Secretary Janet L. Yellen gave remarks at the Pontifical Academy of Sciences and the Pontifical Academy of Social Sciences Event Dreaming of a Better Restart.

Federal Reserve Board

Federal Reserve Board Announces the Third Extension of a Rule to Bolster the Effectiveness of the Small Business Administration’s Paycheck Protection Program

May 14, 2021

The Board of Governors of the Federal Reserve System (Federal Reserve) announced the third extension of a rule to bolster the effectiveness of the Small Business Administration’s Paycheck Protection Program (PPP). Like the earlier extensions, the extension will temporarily modify the Federal Reserve’s rules so that certain bank directors and shareholders can apply to their banks for PPP loans for their small businesses.

Resumption of Home Mortgage Disclosure Act Quarterly Reporting

May 14, 2021

The Board of Governors of the Federal Reserve System issued a consumer affairs letter to its supervised financial institutions regarding the resumption of quarterly reporting under the Home Mortgage Disclosure Act

Arbitrage Capital of Global Banks

May 14, 2021

The Divisions of Research & Statistics and Monetary Affairs of the Board of Governors of the Federal Reserve System released a paper titled “Arbitrage Capital of Global Banks,” as part of its Finance and Economics Discussion Series.

Federal Reserve Bank of New York

U.S. Economy in a Snapshot

May 14, 2021

The Federal Reserve Bank of New York released analysis titled “U.S. Economy in a Snapshot” for May 2021.

New York Fed to Host Online Press Briefing on Mortgage Forbearance in COVID-19 on May 19, 2021

May 14, 2021

The Federal Reserve Bank of New York (New York Fed) announced that on May 19, 2021, its Liberty Street Economics blog will release a four-part series on Mortgage Forbearance in COVID-19, as part of its ongoing Economic Inequality research series. The series uses data from the New York Fed’s Consumer Credit Panel to explore the take-up rate and characteristics of those who participated in mortgage forbearance programs, the impact on participating households and small business owners, and the outlook for the mortgage market as forbearance programs end.

The Federal Reserve and U.S. Treasury Did Not Intervene in FX Markets during the First Quarter

May 13, 2021

The Federal Reserve Bank of New York said in its quarterly report to the U.S. Congress that the Federal Reserve and U.S. Department of the Treasury did not intervene in foreign exchange markets during the first quarter of 2021.

U.S. Securities and Exchange Commission

Staff Guidance on EDGAR Filing of Form C Updated

May 14, 2021

The Division of Corporation Finance of the U.S. Securities and Exchange Commission (SEC) released guidance with respect to the filing of Form C with the SEC, in connection with the effectiveness of certain rule changes as set forth in Release No. 33-10884.

Speech: Mind the (Data) Gaps

May 14, 2021

U.S. Securities and Exchange Commission Commissioner Caroline A. Crenshaw gave the keynote address at the 8th Annual Conference on Financial Market Regulation, titled “Mind the (Data) Gaps.”

FASB Issues Proposed Updates for Future Taxonomies Related to Proposed Accounting Standards Update on Fair Value Hedging

May 14, 2021

The U.S. Securities and Exchange Commission (SEC) issued an announcement that the Financial Accounting Standards Board published proposed updates to the U.S. GAAP Financial Reporting Taxonomy and SEC Reporting Taxonomy related to the Proposed Accounting Standards Update (ASU) on Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Method. The proposed updates to the taxonomies will include new elements, newly added references to transition elements, and modified documentation and standard labels. The proposed updates will also include element deprecations and reference deletions. The public comment period on the proposed updates will end on July 5, 2021.

Consumer Financial Protection Bureau

CFPB Issues TRID Rule FAQs about the BUILD Act

May 14, 2021

The Consumer Financial Protection Bureau issued additional Frequently Asked Questions (FAQs) pertaining to compliance with the TILA-RESPA Integrated Disclosure Rule (TRID Rule). The FAQs address housing assistance loans, and how the BUILD Act impacts the TRID Rule requirements for certain housing assistance loans.

Federal Housing Finance Agency

FHFA Director Mark Calabria’s Statement at The Brookings Institution on May 11, 2021

May 14, 2021

Dr. Mark Calabria, Director of the Federal Housing Finance Agency, gave remarks at The Brookings Institution titled “Living Wills for Housing Government-Sponsored Enterprises: Implementation and Impact.”

International

Bank of England

Unemployment Risk, Liquidity Traps and Monetary Policy

May 14, 2021

The Bank of England released a staff working paper titled “Unemployment Risk, Liquidity Traps and Monetary Policy.”

Blog: Daily Financial Regulation Update — Friday, May 14, 2021 – Lexology

PH Client Alerts

Click here to read more from our Coronavirus series.

Administration Changes

Appointments/Confirmation Hearings

Department of the Treasury – Janet Yellen (effective January 26, 2021)

Consumer Financial Protection Bureau – Rohit Chopra (Nominee)

Securities and Exchange Commission – Gary Gensler (effective April 17, 2021)

Small Business Administration – Isabel Guzman (effective March 16, 2021)

Commodity Futures Trade Commission

Financial Crimes Enforcement Network

National Credit Union Administration – Todd M. Harper

Department of Housing and Urban Development – Marcia Fudge (effective March 10, 2021)

Department of Education – Dr. Miguel Cardona (effective March 2, 2011)

Congress

Click here to view the full text of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), Enacted March 27, 2020.

Click here to view the full text of the Paycheck Protection Program Increase Act of 2020, Enacted April 24, 2020.

Click here to view the full text of the Paycheck Protection Program Flexibility Act of 2020, Enacted June 5, 2020.

Click here to view the full text of the Consolidated Appropriations Act, 2021, Enacted December 27, 2020.  

Click here to view the full text of the American Rescue Plan of 2021, Enacted March 11, 2021.

Click here to view the full text of the PPP Extension Act of 2021, Enacted March 30, 2021.

Click here to view a running list of proposed legislation from the Senate Committee on Banking, Housing, and Urban Affairs, Senate Committee on Small Business and Entrepreneurship, House Committee on Financial Services, and House Committee on Small Business.

Federal Agencies

Department of the Treasury

Treasury Distributes $742 Million to States and Territories through Homeowner Assistance Fund

May 13, 2021

The U.S. Department of the Treasury announced it has distributed $742 million to 42 states and three territories through the Homeowner Assistance Fund (HAF). A part of the Biden-Harris Administration’s American Rescue Plan, HAF was designed to prevent mortgage delinquencies and defaults, foreclosures, loss of utilities or home energy services, and displacement of homeowners experiencing financial hardship due to the COVID-19 public health crisis.

Federal Reserve Board

Governor Waller Delivers Speech on Economic Outlook, Monetary Policy

May 13, 2021

Christopher J. Waller, a Member of the Board of Governors of the Federal Reserve System, shared his outlook for the U.S. economy and the implications for monetary policy in a speech to the Global Interdependence Center’s 39th Annual Monetary and Trade Conference.

Federal Reserve Bank of New York

FRBNY Blog: Racial and Income Consumer Spending Gaps Following COVID-19

May 13, 2021

The Federal Reserve Bank of New York published a Liberty Street Economics blog post entitled, “Racial and Income Gaps in Consumer Spending following COVID-19.” The post’s authors found that high-income counties had a considerably steeper decline in consumer spending at the beginning of the pandemic and social distancing restrictions, and a shallower recovery in consumer spending following the recent loosening of social distancing restrictions, than low-income counties. The differences by race were also sizable but became considerably more muted after the summer of 2020.

FRBNY Blog: Constrained Consumer Spending Across the Income Distribution during COVID-19

The Federal Reserve Bank of New York published a Liberty Street Economics blog post entitled, “Who’s Ready to Spend? Constrained Consumption across the Income Distribution.” The post’s authors looked at detailed spending data to track which categories of goods and services were the most constrained by the COVID-19 pandemic due to social distancing. They found that, in 2019, high-income households typically spent relatively more on these pandemic-constrained categories. Their findings suggest that these consumers may have reduced consumption significantly during the pandemic and will likely play a crucial role in unleashing pent-up demand when pandemic restrictions ease.   

Federal Housing Finance Agency

FHFA Releases February 2021 Foreclosure Prevention, Refinance and FPM Report

May 13, 2021

The Federal Housing Finance Agency released its Foreclosure Prevention, Refinance and FPM Report for February 2021. According to the report, Fannie Mae and Freddie Mac completed 60,661 foreclosure prevention actions in February, bringing the total to 5,720,846 since the start of the conservatorships in September 2008. Approximately 43% of these actions have been permanent loan modifications.

Department of Labor

Labor Department Issues News Release on Unemployment Insurance Weekly Claims

May 13, 2021

The U.S. Department of Labor issued a news release regarding weekly unemployment insurance claims. The release states that, in the week ending May 8, the advance figure for seasonally-adjusted initial claims was 473,000, a decrease of 34,000 from the previous week’s revised level (and the lowest level for initial claims since March 14, 2020 when it was 256,000); the previous week’s level was revised up by 9,000 from 498,000 to 507,000; the four-week moving average was 534,000, a decrease of 28,250 from the previous week’s revised average (and the lowest level for this average since March 14, 2020 when it was 225,500); and the previous week’s average was revised up by 2,250 from 560,000 to 562,250.

State Agencies

New York State Department of Financial Services

New York Enacts Legislation Protecting COVID-19 Stimulus Payments from Debt Collectors

May 13, 2021

Governor Andrew M. Cuomo signed legislation (S.5923-A/A.6617-A) protecting New Yorkers’ COVID-19 stimulus payments from being garnished by debt collectors. All relief payments to New York residents under federal programs, including stimulus payments, tax refunds, rebates, and tax credits to support individuals and children qualified for or received prior to the effective date, will be protected under the legislation. 

International

Bank of England

FCA, Bank Encourage Switch to SONIA in Sterling Exchange Traded Derivatives Market

May 13, 2021

The Bank of England (Bank) released a Statement announcing the Bank and the Financial Conduct Authority, following close engagement with market participants, support and encourage market users and liquidity providers in the sterling exchange traded derivatives market to switch the default traded instrument to SONIA instead of LIBOR beginning June 17, 2021. This is to facilitate a further shift in market liquidity toward SONIA, bringing benefits for a wide range of users as they move away from LIBOR.

Deputy Governor Cunliffe Delivers Speech on “Public Money”

May 13, 2021

Jon Cunliffe, the Bank of England’s Deputy Governor for Financial Stability, delivered a speech entitled “Do We Need ‘Public Money’” at the OMFIF Digital Money Institute in London.

UK Financial Conduct Authority

FCA, PSR Release Joint Statement on Access to Cash

May 13, 2021

The Financial Conduct Authority and Payment Systems Regulator released a joint statement regarding the continued importance of access to cash and banking services for many consumers and business.

FCA Executive Director Mills Speech: Protecting Access to Cash, Banking Services

May 13, 2021

Sheldon Mills, the Financial Conduct Authority’s Executive Director of Consumers and Competition, delivered a speech on the need for government, regulators and industry to maintain their part in maintaining good access to cash across the UK, at the Which? Cash Summit 2.0.

Blog: Daily Financial Regulation Update — Wednesday, May 12, 2021 – Lexology

PH Client Alerts

Click here to read more from our Coronavirus series.

Administration Changes

Appointments/Confirmation Hearings

Department of the Treasury – Janet Yellen (effective January 26, 2021)

Consumer Financial Protection Bureau – Rohit Chopra (Nominee)

Securities and Exchange Commission – Gary Gensler (effective April 17, 2021)

Small Business Administration – Isabel Guzman (effective March 16, 2021)

Commodity Futures Trade Commission

Financial Crimes Enforcement Network

National Credit Union Administration – Todd M. Harper

Department of Housing and Urban Development – Marcia Fudge (effective March 10, 2021)

Department of Education – Dr. Miguel Cardona (effective March 2, 2011)

Congress

Click here to view the full text of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), Enacted March 27, 2020.

Click here to view the full text of the Paycheck Protection Program Increase Act of 2020, Enacted April 24, 2020.

Click here to view the full text of the Paycheck Protection Program Flexibility Act of 2020, Enacted June 5, 2020.

Click here to view the full text of the Consolidated Appropriations Act, 2021, Enacted December 27, 2020.  

Click here to view the full text of the American Rescue Plan of 2021, Enacted March 11, 2021.

Click here to view the full text of the PPP Extension Act of 2021, Enacted March 30, 2021.

Click here to view a running list of proposed legislation from the Senate Committee on Banking, Housing, and Urban Affairs, Senate Committee on Small Business and Entrepreneurship, House Committee on Financial Services, and House Committee on Small Business.

Federal Agencies

Federal Reserve Board

Speech: Patience and Progress as the Economy Reopens and Recovers

May 11, 2021

Lael Brainard, Governor at the Board of Governors of the Federal Reserve System, gave a speech titled “Patient and Progress as the Economy Reopens and Recovers.” Ms. Brainard gave the speech at “The Road to Recovery and What’s Next,” a conference sponsored by the Society for Advancing Business Editing and Writing.

Federal Reserve Bank of New York

Remarks: Measure Twice, Cut Once

May 11, 2021

John C. Williams, President and Chief Executive Officer of the Federal Reserve Bank of New York, gave remarks at the SOFR Symposium: The Final Year (Part II), titled “Measure Twice, Cut Once.”

Federal Deposit Insurance Corporation

FDIC Publishes 2021 Risk Review

May 11, 2021

The Federal Deposit Insurance Corporation published its 2021 Risk Review, a comprehensive summary of emerging risks in the U.S. banking system.

Office of the Comptroller of the Currency

Michael J. Hsu Statement to Agency Employees on Becoming Acting Comptroller of the Currency

May 11, 2021

Acting Comptroller of the Currency Michael J. Hsu shared a statement with staff of the Office of the Comptroller of the Currency at the conclusion of his first day in the role.

Financial Crimes Enforcement Network

FinCEN Extends Application Deadline for Special Monthly Innovation Hours Sessions for Underserved Groups Developing Technology to Fight Illicit Financial Activity

May 10, 2021

The Financial Crimes Enforcement Network (FinCEN) announced that it is extending the deadline for its special monthly FinCEN Innovation Hours Program on June 10, 2021, which will focus on the important role of underserved groups in developing technology to fight illicit financial activity and protect the nation’s security.

National Credit Union Administration

Federal Financial Regulators to Hold Webinar on Emergency Capital Investment Program

May 11, 2021

The National Credit Union Administration announced that it will hold a webinar titled “An Overview of the Emergency Capital Investment Program,” on May, 24, 2021 at 3:00 p.m. Eastern.

Ginnie Mae

Ginnie Mae Reports April MBS Issuance of $89 Billion

May 11, 2021

Ginnie Mae announced that its mortgage-backed securities issuance volume was $89.70 billion in April 2021, up from $82.25 billion issued in March 2021.

U.S. Department of Education

U.S. Department of Education Makes Available $36 Billion in American Rescue Plan Funds to Support Students and Institutions

May 11, 2021

The U.S. Department of Education announced more than $36 billion in emergency grants provided under the American Rescue Plan Act for postsecondary education.

Secretary Cardona Holds Roundtable with Educators to Discuss the Public Service Loan Forgiveness Program

May 11, 2021

U.S. Department of Education Secretary Miguel Cardona held a roundtable to discuss the Public Service Loan Forgiveness program with educators who have student loans and are participating in the program.

International

Bank of England

Descending Safely: Life after LIBOR

May 11, 2021

Andrew Bailey, Governor at the Bank of England, gave a speech at Alternative Reference Rates Committee – the SOFR Symposium: The Final Year, titled “Descending Safely: Life after LIBOR.”

UK Financial Conduct Authority

Capital Market Liquidity in the 2020 Coronavirus Crisis

May 11, 2021

The Financial Conduct Authority released a research note titled “Capital Market Liquidity in the 2020 Coronavirus Crisis.”

Blog: Fintan O’Toole: Brexit and Ireland’s sleepy response to Indian Covid variant are linked – The Irish Times

Everything is connected. This is both the great joy of the world and its great terror. And it seems right now that two of the things that are intimately and alarmingly connected are Brexit and Ireland’s sleepy response to the threat of the Indian coronavirus variant.

If anything is going to reverse the progress we have made in fighting the pandemic, it is the spread of variants that have had such a devastating impact on India. If you look at graphs of the proportion of the dominant Indian variant (called B.1.617.2) found in tests taken in European countries, the picture is starkly clear. By far the largest incidence is in the UK. And out on its own in second place is Ireland.