We spoke to Joann Needleman, leader of Clark Hill’s financial services and regulatory and compliance practice. She advises banks, financial institutions and financial services entities on regulatory compliance issues, state and federal supervisory examinations and regulatory investigations before federal agencies.

A former member of the Consumer Financial Protection Bureau’s (CFPB) Consumer Advisory Board, Joann provides her clients with useful strategies and common-sense solutions in order to prepare for areas of regulatory scrutiny.

Your career spans a wide range of financial services regulatory and compliance matters, could you share what initially sparked your interest in this field?

My interest in financial services was really sparked organically. It started as a young attorney where I represented a small leasing company, and it blossomed from there. I got involved in various trade associations and realized the disconnect between industry and regulators, in particular the belief by regulators that industry did not care about consumer protection.  

Dodd Frank was a game changer for the financial services industry, especially non-banks. The new law required not only a different approach to compliance but a different way in how we engage with our clients.

What has been the proudest moment of your career?

My appointment to the CFPB Consumer Advisory Board. Industry representation on the board was extremely sparse so I am grateful that I was given the opportunity.

“Don’t be afraid to say no and understand that it’s a marathon and not a sprint.”

Joann Needleman

As a leader of Clark Hill’s Financial Services Regulatory and Compliance practice, what are some of the key challenges your clients are currently facing?  

Regulatory uncertainty has been the primary issue for all my clients. Whether it is trying to navigate over-reaching guidance from regulators, to the whiplash in regulatory expectations in a new administration, the unpredictability is simply bad for business and bad for operations.  

Given your experience as a former member of the CFPB’s Consumer Advisory Board, what unique perspectives do you bring to your clients regarding CFPB compliance?

I had never really engaged with consumer advocates prior to my appointment. My time on the Board reinforced my belief that all points of view must have a seat at the table.

It also gave me a inside look at how the CFPB operates and how much influence any given director can have. To understand the CFPB you have to understand who is running the agency. The rank-and-file employees of the CFPB have one mission and focus, but a director can change that.

That is much different than the infrastructure of prudential regulators. Even though it has been a decade since I served on the Board, many of the same people I have engaged with are still with the Bureau and their belief system has not changed. I understand the CFPB mindset, so I have been able to prepare my clients to affirmatively explain and document their processes to the satisfaction of the examiners and enforcement attorneys.

With the evolving regulatory landscape, what do you see as the next major areas of focus for CFPB oversight and enforcement?

Clearly, we are entering into a new era at the CFPB. Should Jonathan McKernan be confirmed he will be the most qualified CFPB Director since the establishment of the Bureau, given his experience as a consumer finance attorney, a legislative aide, and a prudential regulator. I believe he will focus more on supervision than rulemaking and enforcement.

What advice would you give to your younger self?  

Don’t be afraid to say no and understand that it’s a marathon and not a sprint.

Can you recommend a good book?

Mel Robbins, Let Them.