The CFPB rule includes clarifications on standards for releasing supervisory information to the public based on public comments.
11/14/2022 11:20 A.M.
2 minute read
The Consumer Financial Protection Bureau has finalized changes to its nonbank supervision procedural rule.
“The changes will provide transparency to the public about how we are using an important supervisory tool to keep pace with fast-moving consumer finance markets,” according to a news release from the CFPB.
Based on public comments, in this final version of the procedures, the bureau has clarified the standards that will decide what information is appropriate for public release.
ACA International submitted comments on the procedural rule with concerns about the rulemaking process as well as whether supervisory proceedings should be public.
Comments from the banking industry showed support for oversight of nonbank companies, but also concern about publicizing findings and risk-based assessments about a company before having inspected it firsthand, ACA previously reported.
The bureau is also extending the amount of time available to nonbank entities to provide input about what information should be released, according to the CFPB’s announcement.
The final rule, according to the CFPB:
- Codifies a standard to govern information that will not be included in the public release of a designation decision: The bureau will not publish information that would fall within two Freedom of Information Act (FOIA) exemptions, which protect confidential commercial information and personal privacy. The bureau can also withhold information when there is other good cause to do so—for instance, in order to avoid revealing specific violations of law or specific compliance management deficiencies. Overall, this approach will provide assurance to the company involved that the bureau will protect specific categories of sensitive information, while not stopping companies from raising concerns about the release of other information.
- Extends the time for respondents to provide input related to the bureau’s public release determinations from seven to 10 business days: The company has the option of expressing its views about whether an order should be publicly released, and the bureau is now extending the deadline to do so.
The bureau’s rule is available online. It will be in effect upon publication in the Federal Register.
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