Background Screening Challenges in the Financial Services Industry: Navigating the Regulatory Maze

On July 24, 2020, the Federal Deposit Insurance Corporation issued a final rule that codifies its Statement of Policy related to Section 19 and makes several important changes to the Policy, including narrowing the scope of crimes subject to Section 19. The final rule is expected to allow more individuals to work for regulated institutions without going through the Section 19 application process. Given the steep penalties that FDIC-regulated institutions could face if they employ a person with a Section 19 offense, it is important for them to understand how the final rule might impact their hiring practices. At the same time, class actions alleging violations of the hyper-technical requirements under the Fair Credit Reporting Act are on the rise, which adds another layer of complexity for these highly regulated employers.

In this webinar, industry experts Pamela Devata and Jennifer Mora help financial services companies navigate their Section 19 responsibilities, including the final rule’s changes to the exceptions for de minimis crimes, while at the same time considering their obligations under the FCRA and any state and local employment laws that regulate employment screening.

 

This recording is eligible for CLE credit in CA, IL, NY, and NJ. Credit is pending in TX.  All other jurisdictions will be applied for as requested, but please note that not all states allow for distance learning so some states will be ineligible. To request CLE credit, fill out this form and return it to CLE@seyfarth.com.  If you have questions about jurisdictions, please email CLE@seyfarth.com. CLE credit for this recording expires on 10/06/2021.