Five federal financial regulatory agencies today invited comment on a proposal outlining and confirming the agencies’ use of supervisory guidance for regulated institutions. The proposal would codify the statement, as amended, that was issued in September 2018 by the agencies that clarified the differences between regulations and guidance.
Unlike a law or regulation, supervisory guidance does not have the force and effect of law and the agencies do not take enforcement actions or issue supervisory criticisms based on non-compliance with supervisory guidance. Rather, supervisory guidance outlines supervisory expectations and priorities, or articulates views regarding appropriate practices for a given subject area.
In contrast to supervisory guidance, regulations do have the force and effect of law and enforcement actions can be taken if regulated institutions are in violation. Regulations are also generally required to go through the notice and comment process.
Comments will be accepted for 60 days following publication in the Federal Register.
View the invitation for comment on the proposed rule: https://files.consumerfinance.gov/f/documents/cfpb_npr_supervisory-guidance_2020-10.pdf
Media Contacts:
- Federal Reserve Board: Eric Kollig, (202) 452-2955
- CFPB: Marisol Garibay, (202) 384-8538
- FDIC: Julianne Fisher Breitbeil, (202) 898-6895
- NCUA: Joe Adamoli, (703) 518-6330
- OCC: Bryan Hubbard, (202) 649-6870
The Consumer Financial Protection Bureau (CFPB) is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives. For more information, visit www.consumerfinance.gov.
Official news published at https://www.consumerfinance.gov/about-us/newsroom/agencies-propose-regulation-role-supervisory-guidance/
