The Consumer Financial Protection Bureau took another step to coordinate efforts with state regulatory agencies when it signed an agreement with the Conference of State Bank Supervisors on May 21. Acting Deputy Director Steven Antonakes signed a supervisory framework document on behalf of the CFPB at a forum in Nashville.
The document builds on an information sharing agreement signed by federal and state regulators in 2011.
“After the Dodd-Frank Act created the CFPB as a new federal counterpart in the non-depository arena, the states quickly moved to establish a foundation of state and federal coordination for supervision of providers of consumer financial products,” said Charles Vice, newly appointed Chairman of CSBS and Commissioner of the Kentucky Department of Financial Institutions. “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.”
“Our strong partnership with state regulators is critical to protecting consumers,” said CFPB Director Richard Cordray. “By working together, we are streamlining our processes, making the most of our joint resources, and ensuring evenhanded oversight of federal consumer financial laws.”
The new framework established the process for how state and federal regulators will share supervision of non-depository financial services providers and covered depository institutions with more than $10 billion in assets.
The Dodd-Frank Wall Street Reform and Consumer Protection Act requires the CFPB to coordinate supervisory activities with state bank regulators. The framework provides a guide for flexible regulatory coordination designed to protects consumers and reduce regulatory burden on industry.
The framework is intended to help agencies achieve examination efficiencies and to avoid duplication of time and resources. Among the items to be shared, the agreement calls for the agencies to share proposed examination scheduled for independent examinations, on at least an annual basis.
The agreement also calls for agencies to designate a single point of contact for exam efforts. In developing and updating the comprehensive supervisory plan for any examined entity, the agreement calls for the single point of contact to consider the views and examination mandates/guidelines of the CFPB, the host state supervisors, state regulators and all applicable law.