• Service: Advisory, Risk Consulting, Financial Risk Management
  • Industry: Banking & Capital Markets
  • Date: 8/2/2013

Regulatory Practice Letter #13-16 

The CFPB has released a final rule that establishes procedures by which the Bureau would subject a nonbank provider of consumer financial products and services to CFPB supervision when the Bureau has reasonable cause, based on consumer complaints or information from other sources, to determine that such person is engaging, or has engaged, in conduct that poses risks to consumers relative to the offering or provision of consumer financial products or services and the nonbank is not otherwise covered by the CFPB’s supervisory authority.
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The final rule implements provisions under Section 1024 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which give the CFPB authority to supervise, by order, any nonbank provider of consumer financial products or services under these circumstances, referred to as risk-based supervision, after providing notice to the person and a “reasonable opportunity” for the person to respond.  A nonbank supervised by the CFPB pursuant to the risk-based supervision rule is permitted to petition for termination of CFPB oversight two years after the date of the order.


The final rule becomes effective August 2, 2013.  It is substantially the same as proposed in May 2012 (see Regulatory Practice Letter 12-10).