The Consumer Financial Protection Bureau (CFPB), the National Credit Union Administration (NCUA), and the Office of the Comptroller of the Currency (OCC) have finalized their rules on the role of supervisory guidance.
The agencies issued a statement in 2018 explaining supervisory guidance, unlike laws or regulations, did not have the force and effect of law, and the agencies would not take enforcement actions or issue supervisory criticisms based on non-compliance with them. Along with the Federal Reserve, the Treasury, and the Federal Deposit Insurance Corp., the agencies made a notice of proposed rulemaking and a request for public comment November 2020.
“Supervisory guidance outlines the agencies’ supervisory expectations or priorities and articulates the agencies’ general views regarding practices for a given subject area,” the agencies stated in their final rules. “Supervisory guidance often provides examples of practices that mitigate risks, or that the agencies generally consider to be consistent with safety-and-soundness standards or other applicable laws and regulations, including those designed to protect consumers.”
The agencies received about 30 comments on the propose rule. Trade associations for banking institutions and other businesses, state bankers’ associations, individual financial institutions, and one congressman supported the propose rule. Two commenters opposed the rule.
The final rules will be effective 30 days after their publication in the Federal Register.