Committee introduces FAIR Exams Act, advocating for greater transparency and accountability in financial services oversight

Esteemed lawyer and community banking expert Patrick J. Kennedy, Jr., Executive Chairman of TransPecos Banks, and AFC member, to testify before the committee

Washington, D.C. (February 5, 2025) – The American Fintech Council (AFC), the premier industry association representing responsible fintech companies and innovative banks, is proud that Patrick J. Kennedy, Jr. will be representing community bankers today at the first House Financial Services Committee (HFSC) hearing of 2025, focused on community banking and related issues. The hearing will explore the challenges facing community banks and discuss legislative reforms to enhance responsible innovation and support community lenders, including the Fair Audits and Inspections for Regulators (FAIR) Exams Act, a key policy priority for AFC.

Kennedy, Founding Partner of Kennedy Sutherland LLP and Executive Chairman of TransPecos Banks, an AFC member, will testify before the Committee, emphasizing among other items the need for clear, consistent, and risk-based regulatory examinations that support innovation without unnecessary compliance burdens. His testimony will highlight the importance of a more cooperative and open dialogue among banks and their regulators.

The FAIR Exams Act would establish an Office of Independent Examination Review to ensure greater accountability and transparency in financial institution examinations. The bill would also prohibit regulatory retaliation against banks that appeal supervisory decisions and require examiners to complete their reports within 60 days.

In addition to Kennedy’s testimony, Senior Vice President and Head of Policy and Regulatory Affairs, Ian P. Moloney, will attend the hearing, reinforcing AFC’s commitment to engaging with lawmakers and other officials to foster a regulatory environment that balances consumer protection, responsible innovation, and financial inclusion.

"Regulatory uncertainty stifles innovation and limits access to financial services for consumers and small businesses. This is especially true in the community banking space, where resources must be deployed strategically," said Moloney. "The FAIR Exams Act is a commonsense solution that ensures examinations are conducted fairly, efficiently, and transparently—providing much-needed clarity for financial institutions. We appreciate the engagement of Pat and our membership, applaud the leadership of Chairman French Hill, and look forward to working with policymakers on this critical issue."

AFC remains dedicated to working with lawmakers, regulators, and industry leaders to advance responsible financial innovation while promoting a regulatory framework that encourages competition and consumer access.

A standards-based organization, AFC is the premier trade association representing the largest financial technology (Fintech) companies and innovative banks offering embedded finance solutions. AFC’s mission is to promote a transparent, inclusive, and customer-centric financial system by supporting responsible innovation in financial services and encouraging sound public policy. AFC members foster competition in consumer finance and pioneer products to better serve underserved consumer segments and geographies.

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