Agencies propose rule on role of supervisory guidance
Federal financial regulators including NCUA released a joint proposed rule on the role of supervisory guidance Tuesday. The proposal codifies a September 2018 statement from the same agencies that supervisory guidance does not have the force and effect of law.
“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.”
NCUA, as well as the other agencies, will accept comments on the statement for 60 days following its publication in the Federal Register.