Seeking to enhance coordination among federal and state regulators to drive financial innovation, the Consumer Financial Protection Bureau (CFPB) partnered with multiple state regulators to launch the American Consumer Financial Innovation Network (ACFIN).
The bureau invited all state regulators to join ACFIN and had collected seven members at the time of the network’s launch. Those members are the attorneys general of: Alabama, Arizona, Georgia, Indiana, South Carolina, Tennessee and Utah. Federal and state regulators also are eligible to join.
“Federal and state coordination promotes consistency in the regulation of consumer financial products and services while facilitating consumer-beneficial innovation,” CFPB Director Kathy Kraninger said in a statement. “ACFIN will provide a platform for federal and state regulators to coordinate with each other as they develop new rules of the road and apply existing ones. This coordination can provide greater regulatory certainty across jurisdictions and allow regulators to keep pace with market developments. I will continue to work to encourage other state regulators to join this important new initiative that will foster collaboration among federal and state regulators.”
Through ACFIN, the bureau hopes to enhance shared objectives among regulators, such as competition, consumer access and financial inclusion. ACFIN also is intended to promote regulatory certainty for companies seeking to innovate their operations and product lines, which the bureau believes will benefit the economy and consumers. The CFPB said the network also plans to try to keep pace with market innovations and work to root out fraud, discrimination and deceptive practices.
Recognizing that different methods of facilitating innovation may be appropriate for different jurisdictions, the CFPB noted that members are expected to coordinate in offering office hours, with the opportunity to also coordinate on no-action letters (NALs) or sandbox trials when appropriate. The bureau announced the release a new NAL policy, along with two other policies geared toward facilitating innovation, in tandem with the launch of the ACFIN.
ACFIN members will be encouraged to share information to facilitate coordination among the members and to coordinate on innovation-related policies and programs, according to the bureau.