Dear FIBA Members,
It has been a good start to the New Year! We celebrated the installation of our new Officers and Board of Directors at a wonderful social event at the Coral Gables Country Club, held an engaging Strategic Planning Session with our committee chairs and co-chairs, and organized very successful events hosted by the LARA and Women’s Leadership committees.
However, into everyone’s life a little rain must fall! As you have seen from our LARA Alerts, the industry is facing another potential significant regulatory challenge in Florida HB 585. This bill provides that customers who reasonably believe that a financial institution has terminated or restricted access to their account in “bad faith” may file a complaint with the Florida Office of Financial Regulation (OFR), for an investigation. If the OFR determines that the action was taken in “bad faith,” the OFR would notify and provide a report of its findings to the Attorney General, the Florida CFO and the customer. The bill also creates a private right of action that will permit the customer to sue the financial institution within 12 months of the finding by the OFR of “bad faith.”
Last week I traveled to Tallahassee together with Legal & Regulatory Affairs Committee Chair, Marina Olman, for meetings to discuss the negative impact the bill would have on the financial services industry, if passed.
Our first stop was breakfast with Anthony DiMarco, EVP of Govt. Relations at the Florida Bankers Association with whom we have been tracking the bill since it was filed on November 20, 2023. Anthony had coordinated a meeting with the Senate President’s staff to present the concerns of our members and we discussed strategy for our approach.
Prior to meeting with Senate staff, Marina and I met with key OFR staff, including Commissioner Weigel. The OFR shared its perspectives on the bill and the added burden it would place on the OFR to address gaps in various key provisions.
Then it was on to the Senate, where Anthony DiMarco joined Marina and myself in a 45-minute meeting with Christie Letarte, Senior Policy Advisor for Banking & Insurance at the Office of the Senate’s President. Marina and I, together with Anthony, had an opportunity to express our objections to the bill, including how the bill, if passed in the Senate and signed into law, would result in increased costs, regulatory burden and litigation risk for banks. Ms. Letarte was engaged throughout our conversation, asking questions during our meeting and taking notes on our expressed concerns.
The Florida legislative session ends next week, March 8, 2024. As of the date of this message, the bill has not gained traction in the Senate, but things can change at any time. Greatly appreciate the work of Marina and our LARA Committee who are closely tracking this bill and will update our members as this further develops.
Regards,
David Schwartz
CEO & President
Marina Olman
Greenberg Trauring