The NCUA board voted at a special meeting Wednesday to issue a joint interagency proposal on the role of supervisory guidance. The proposal was announced last week, and comments will be due within 60 days of its publication in the Federal Register.
Specifically, it codifies a September 2018 statement that supervisory guidance does not have the force and effect of law. Agencies issuing the rule include the Office of the Comptroller of the Currency, Federal Reserve, Federal Deposit Insurance Corporation and Consumer Financial Protection Bureau.
“By codifying the 2018 Statement, the proposed rule is intended to confirm that the agencies will continue to follow and respect the limits of administrative law in carrying out their supervisory responsibilities,” the proposal reads. “The 2018 Statement reiterated well-established law by stating that, unlike a law or regulation, supervisory guidance does not have the force and effect of law. As such, supervisory guidance does not create binding legal obligations for the public. The proposal would also clarify that the 2018 Statement, as amended, is binding on the agencies.”