CFPB Seeks to Reduce Reg Barriers to Innovation

Sep 10, 2019
The Consumer Financial Protection Bureau would not act against a company for providing a product or service under certain circumstances under a new No-Action Letter policy, one of three new policies designed to remove regulatory barriers to innovation.

The bureau issued its first No-Action Letter to more than 1,600 housing counseling agencies that partner with the Department of Housing and Urban Development.

The CFPB also issued policies on Trial Disclosure Programs allowing entities to test alternative consumer disclosures and Compliance Assistance Sandboxes that enable testing of financial products or services when there is regulatory uncertainty.

In comment letters issued in February and last October, ICBA expressed support for the proposals while encouraging the bureau to ensure they have a meaningful impact on innovation and regulatory oversight.