AFSA Submits Comments on Role of Supervisory Guidance
The American Financial Services Association (AFSA) submitted comments in support of several federal banking agencies’ notice of proposed rulemaking on the role of supervisory guidance. Supervisory guidance is issued by agencies in the form of (but not limited to) interagency statements, advisories, bulletins, policy statements, questions and answers, and frequently asked questions.
The letter was sent to the Office of the Comptroller of the Currency, the National Credit Union Administration, the Board of Governors of the Federal Reserve System, the Consumer Financial Protection Bureau and the Federal Deposit Insurance Corporation.
The proposed rule would codify the “Interagency Statement Clarifying the Role of Supervisory Guidance,” which reiterated the agencies’ adherence to administrative law and their recognition that “unlike a law or regulation, supervisory guidance does not have the force and effect of law.” And, further, that “supervisory guidance does not create binding legal obligations for the public.”
AFSA strongly supports the agencies for focusing on the appropriate use of guidance in the supervisory process and that supervisory criticism should be directed specifically to actions of financial institutions which cause consumers harm or violate law.
January 6th, 2021
