In a move intended to better distinguish between guidance and regulation, the federal prudential regulators collectively released a clarifying statement regarding the role of guidance.
The financial industry and other interested parties believe the move is a positive step given the fact that past guidance issued by the Consumer Financial Protection Bureau (CFPB) under Richard Cordray’s leadership was deemed to have the same force and effect of a law.
Find out more about what the regulators intend to do going forward in this regard.