The program would provide clarity on how to improve compliance to regulated entities and there will be the opportunity for public comments on the proposed program.
6/18/2020 17:00
The Consumer Financial Protection Bureau has launched a pilot advisory opinion (AO) program to publicly address regulatory uncertainty in the bureau’s existing regulations.
“The pilot AO program will allow entities seeking to comply with regulatory requirements to submit a request where uncertainty exists. The bureau will then select topics based on the program’s priorities and make the responses available to the public,” the CFPB reports in a news release.
ACA International has advocated for clear guidance from the CFPB and appreciates the opportunities the pilot program will present for members and the accounts receivable management industry. In comments to the CFPB, ACA has expressed full support of the bureau’s desire to provide clear guidance, interpretation and explanation regarding the bureau’s expectations of regulated entities like ACA members.
ACA has also supported legislation in this area.
The CFPB’s improvements to the guidance processes, with the goal to provide clear rules to regulated entities, include “issuing more robust compliance aids and frequently asked questions as well as providing clarifications to individual entities. This pilot advisory program builds on those efforts, recognizing that the public widely would benefit from a process that provides clarifications broadly and not just to requesting individuals or entities,” according to the news release.
The pilot program will focus on four key priorities:
- Consumers are provided with timely and understandable information to make responsible decisions;
- Identify outdated, unnecessary or unduly burdensome regulations in order to reduce regulatory burdens;
- Consistency in enforcement of federal consumer financial law in order to promote fair competition; and
- Ensuring markets for consumer financial products and services operate transparently and efficiently to facilitate access and innovation.
“Additionally, initial factors weighing for the appropriateness of an AO include: that the interpretive issue has been noted during prior bureau examinations as one that might benefit from additional regulatory clarity; that the issue is one of substantive importance or impact or one whose clarification would provide significant benefit; and/or that the issue concerns an ambiguity that the bureau has not previously addressed through an interpretive rule or other authoritative source,” according to the CFPB. “There will be a strong presumption against appropriateness of an AO for issues that are the subject of an ongoing investigation or enforcement action or the subject of an ongoing or planned rulemaking.”
If deemed appropriate, the bureau will issue an advisory opinion based on its summary of the facts presented that would be applicable to other entities in situations with similar facts and circumstances. The advisory opinions would be posted on the bureau’s website and published in the Federal Register.
In addition to the pilot, the bureau also announced that the public can comment on the proposed AO program. Following the conclusion of the pilot, the proposed AO program will be fully implemented after the bureau’s review of comments received.
Requests for advisory opinions may be submitted via email to [email protected].
For more information on how the ACA Licensing staff can assist with your licensing needs, please contact us at [email protected] or call (952) 926-6547.