CFPB Developments: Coordinating the Supervision of Depository and Non-Depository Institutions

• Published in: The Business Lawyer Vol. 68; no. 2; pp. 619 - 624
• Main Authors: Benoit, Michael A., Taft, Jeffrey P.
• Format: Journal Article Trade Publication Article
• Language: English
• Published: Chicago Section of Business Law of the American Bar Association 01.02.2013; American Bar Association
• Subjects: Administrative agencies; Agreements; Authority; Commercial law; Consumer credit; Consumer protection; Consumers; Coordination; Credit insurance; Debt collection; Deposit accounts; Depository institutions; Enforcement; Federal law; Finance companies; Financial institutions; Financial services; Government agencies; Insurance regulation; Jurisdiction; Laws, regulations and rules; Memoranda; Memoranda of understanding; Nondepository institutions; Polls & surveys; Regulation; Regulation of financial institutions; Small business; Small businesses; Supervision; Survey—Consumer Financial Services; Wall Street Reform & Consumer Protection Act 2010-US; United States > US
• ISSN: 0007-6899; 2164-1838

The Bureau of Consumer Financial Protection (CFPB) has recently entered into agreements with the Federal Trade Commission and the federal banking regulators clarifying their supervisory authority with respect to the supervision of depository institutions and non-depository institutions. In addition, the CFPB has started to define its jurisdiction over non-depository institutions through rules concerning larger participants in certain consumer financial service and product markets and by proposing rules to establish supervisory authority over certain non-depository institutions based upon a risk determination. These issuances are expected to facilitate coordination between the federal agencies responsible for regulating consumer financial services and clarify which non-depository institutions are subject to the CFPB's jurisdiction. This survey addresses these recent issuances and their potential impact on the supervision and examination of depository and non-depository institutions by the CFPB. In addition to the supervision of large depository institutions and their affiliates, the Dodd-Frank Act grants the CFPB supervisory powers over certain non-depository institutions.