Federal regulations can often prove confusing and difficult to comply with, even when regulated institutions do their best to remain compliant. That’s why the League recently advocated for the Consumer Financial Protection Bureau (CFPB) to better enable compliance through a program that offers an advisory opinion on requested interpretive guidance. Specifically, the League encouraged the CFPB to:
- Enhance innovation within financial services and avoid issuing advisory opinions that could ultimately stifle financial institutions’ ability to innovate;
- Provide an opportunity for stakeholder comment or feedback during the advisory opinion selection process, and a mechanism for stakeholders to request modifications to, or the rescission of, a published advisory opinion; and
- Expressly limit the permissible requestors for advisory opinions to regulated entities and their representatives, including outside counsel or a trade association, as those parties have a direct interest in the requested advisory opinion.
Please read the full comment letter and contact League Regulatory Counsel Chris Noble if you have questions or concerns about the CFPB’s proposed advisory opinion program.