WASHINGTON (10/14/14)--A new proposal from the Consumer Financial Protection Bureau (CFPB) could help financial institutions and other organizations discover where new financial products or services fit with existing statutes and regulations.
According to the bureau, if a new product or service "promises substantial consumer benefit" where there is uncertainty about how existing regulations implemented by the CFPB would apply, bureau staff could issue a no-action letter.
The letter would advise the recipient that, subject to its stated limitations, the staff has "no present intention to recommend initiation of an enforcement or supervisory action against the requester with respect to a specified matter."
The proposal is not a waiver for any law or regulation, nor does it give the requesting organization an exemption from regulatory compliance.
According to the CFPB blog, "subject to some limitations, our staff would not recommend initiating supervisory or enforcement action against the requester with respect to the provisions specified in the letter."
The Credit Union National Association will be filing a comment letter on the proposal within the next 60 days.
"We'll be looking at this very closely, to see what positive effects it could have for credit unions, and to make sure other entities in the marketplace cannot escape regulatory constraints through this process," said CUNA Deputy General Counsel Mary Dunn.
Use the resource links below to access the proposed policy, and the CFPB blog entry on the proposal.