Earlier this week, the Consumer Financial Protection Bureau (“CFPB”) announced it has reached a “framework” for working with the Conference of State Bank Supervisors (“CSBS”) for “cooperation on supervision and enforcement matters.” The newly developed framework builds upon a 2011 memorandum of understanding and a 2012 statement of intent between the CFPB and CSBS, both of which related to information sharing.
The CFPB’s press release explains that “state regulators and the CFPB will consult on standards, procedures, and practices used to conduct examinations of providers of consumer financial products and services to ensure that they are complying with federal consumer financial law.” The CSBS press release associated with the framework explains, “This enhanced framework will ensure that state and federal regulators can work together to provide more efficient supervision, reduce burden for the industry, and improve consumer protection.”
The framework applies to all non-depository institutions and those depository institutions with over $10 billion in assets. John Ryan, president and CEO of CSBS, noted that the CFPB’s jurisdiction includes institutions beyond CSBS members. Accordingly, the framework will likely be accepted by additional state regulatory agencies (i.e., the regulators of certain non-bank entities).
The CFPB-CSBS framework provides processes for coordinating the scheduling of exams, developing supervisory plans for particular institutions, coordinating information requests, and additional information sharing. Institutions should contact Spilman or regulatory counsel to discuss implications of the new framework of state-federal regulatory enforcement.