US Export Plan - Sector Report - Financial and BS

Trade, policy and regulation considerations

Banking and financial services are a highly regulated sector in the US, with its financial regulatory system being unique in that it operates on a dual framework where both federal and state authorities have jurisdiction over financial services.

There are many key federal agencies in the financial services sector in the US, some of which include:

• Consumer Financial Protection Bureau (CFPB): consumer protection and fair lending
• Securities and Exchange Commission (SEC): securities and investment products
• Office of the Comptroller of the Currency (OCC): national banks
• Federal Trade Commission (FTC) for consumer protection and competition
• Financial Stability Oversight Council (FSOC) to monitor systemic risks and designate Systemically Important Financial Institutions (SIFIs) for enhanced supervision
• There are several different bank regulators across the US that govern bank safety and soundness via capital, liquidity, and supervisory requirements, like the Federal Reserve.
• Regulatory audits are also a routine aspect of operating within the US financial sector

There are also professional qualification requirements that impact service exports from the UK to the US, especially in regulated sectors such as finance and law. Finance professions in the US require UK professionals to navigate US licensing, certifications and potentially local practice rules, usually through state level bodies, with requirements varying by state and profession, although some professions do offer mutual recognition of qualifications.^[32]

More generally in the US, companies are required to adhere to different requirements. Some examples of these are as follows:

• Consumer Financial Protection and Security Laws: The CFPB enforces various federal-level consumer protection laws, such as the Truth in Lending Act (TILA) and the Fair Credit Reporting Act (FCRA) to ensure transparency in consumer financial products and services, including lending and credit reporting.
• Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) Requirements: FinCEN enforces the BSA which are federal laws, requiring financial institutions, to implement AML programs, report suspicious activities, and maintain certain records.
• Federal Data Privacy Laws: Although the US does not have a comprehensive federal data privacy law, several laws, such as the Gramm-Leach-Bliley Act (GLBA), set standards for financial institutions. Compliance involves safeguarding sensitive information and notifying customers about your data-sharing practices.^[33]

Additional consideration should be given to state-level regulations which often layer requirements on top of federal rules. For example, California’s Consumer Financial Protection Law (2020) has expanded state authority to regulate fintech, debt collectors, and small-dollar lenders, mirroring some Consumer Financial Protection Bureau (CFPB) powers.^[34] Another example is that the New York Department of Financial Services (NYDFS) that regulates banks, insurance, and fintech, enforces cybersecurity regulations (23 NYCRR 500) requiring financial institutions to implement risk-based cybersecurity programmes.^[35]

There are also state-specific licensing requirements in which most states require financial institutions to obtain Money Transmitter Licenses (MTLs) for businesses that handle money transfers, payments, or virtual currencies and comply with state-specific consumer protection laws, which vary widely. Many states also require a lending license for business models involving lending. Although requirements differ depending on the state, they generally involve proving financial soundness, enforcing strong consumer protection practices, and complying with interest rate limitations.^[36]

Despite these regulatory barriers, there are also a number of federal-level initiatives and bilateral agreements that can benefit financial companies entering the US. Examples include:

• UK-US Financial Regulatory Working Group (FRWG): Biannual dialogue between the UK’s HM Treasury and the US Treasury to deepen regulatory cooperation, enhance financial stability, and promote investor protection and efficient markets.^[37]
• Transatlantic Taskforce for Markets of the Future (2025): Established in September 2025 by HM Treasury and the US Treasury to boost collaboration on capital markets, digital assets and innovative financial activities.^[38]