šCFPB Proposes Standard for Nonbank Supervision and Consumer Risks
Legal Standard Applicable to Supervisory Designation Proceedings
Summary
The Consumer Financial Protection Bureau (Bureau or CFPB) is proposing to adopt a standard definition of "risks to consumers with regard to the offering or provision of consumer financial products or services" that will bind the Bureau in proceedings to designate nonbank covered persons for Bureau supervision. This will ensure that the Bureau acts within the bounds of its statutory authority and provide clarity to institutions about the standard the Bureau applies.
Agencies
- Consumer Financial Protection Bureau
Business Impact
$$ - Med
The proposed rule by the CFPB outlines a clearer definition of ārisks to consumersā in supervisory designations, impacting compliance requirements for nonbank covered persons. This introduces financial implications related to supervision costs and operational adjustments for affected entities.