Policy Statement on Compliance Aids
| Published date | 27 January 2020 |
| Citation | 85 FR 4579 |
| Record Number | 2020-00648 |
| Section | Rules and Regulations |
| Court | Consumer Financial Protection Bureau |
Federal Register, Volume 85 Issue 17 (Monday, January 27, 2020)
[Federal Register Volume 85, Number 17 (Monday, January 27, 2020)]
[Rules and Regulations]
[Pages 4579-4580]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-00648]
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BUREAU OF CONSUMER FINANCIAL PROTECTION
12 CFR Chapter X
Policy Statement on Compliance Aids
AGENCY: Bureau of Consumer Financial Protection.
ACTION: Policy statement.
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SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is
publishing this policy statement in order to announce a new designation
for certain Bureau guidance, known as ``Compliance Aids,'' and to
explain the legal status and role of guidance with that designation.
DATES: This policy statement becomes applicable on February 1, 2020.
FOR FURTHER INFORMATION CONTACT: Christopher Shelton, Counsel, or Lea
Mosena, Senior Counsel, Legal Division, 202-435-7700. Regulatory
inquiries can be submitted at https://reginquiries.consumerfinance.gov/. If you require this document in an
alternative electronic format, please contact
[email protected].
SUPPLEMENTARY INFORMATION:
I. Background
The Bureau's ``primary functions'' under the Dodd-Frank Wall Street
Reform and Consumer Protection Act \1\ include issuing guidance
implementing Federal consumer financial law.\2\ The Bureau believes
that providing clear and useful guidance to regulated entities is an
important aspect of facilitating markets that serve consumers.
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\1\ [thinsp]Public Law 111-203, 124 Stat. 2081 (2010).
\2\ 12 U.S.C. 5511(c)(5). Moreover, the Dodd-Frank Act
authorizes the Director of the Bureau to issue guidance as may be
necessary or appropriate to enable the Bureau to administer and
carry out the purposes and objectives of the Federal consumer
financial laws and to prevent evasions thereof. 12 U.S.C.
5512(b)(1). Additionally, the Bureau is authorized to establish
general policies, including with respect to implementing the Federal
consumer financial laws through guidance. 12 U.S.C. 5492(a)(10).
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Since its inception, the Bureau has provided guidance through a
variety of means, and its guidance functions have evolved and are
continuing to evolve in response to feedback from industry and other
stakeholders. Some examples of compliance resources that the Bureau has
released include small entity compliance guides, instructional guides
for disclosure forms, executive summaries, summaries of regulation
changes, factsheets, flow charts, compliance checklists, frequently
asked questions, and summary tables.
II. Policy Statement on Compliance Aids
Going forward, the Bureau intends to establish a new category of
materials that are similar to previous compliance resources but will
now be designated as ``Compliance Aids.'' This designation will provide
the public with greater clarity regarding the legal status and role of
these materials, as discussed below.\3\
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\3\ This policy statement does not apply to materials that do
not bear the label ``Compliance Aid,'' or to the use of outdated
materials that have been withdrawn or superseded. It also does not
alter the status of materials that were issued before this policy
statement, although the Bureau may re-issue certain existing
materials as Compliance Aids if it is in the public interest and as
Bureau resources permit. Moreover, this policy statement does not
determine the policies of regulators other than the Bureau.
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The Bureau does not intend to use Compliance Aids to make decisions
that bind regulated entities. Unlike the Bureau's regulations and
official interpretations, Compliance Aids are not ``rules'' under the
Administrative Procedure Act.\4\ Rather, Compliance Aids present the
requirements of existing rules and statutes in a manner that is useful
for compliance professionals, other industry stakeholders, and the
public.\5\ Compliance Aids may also include practical suggestions for
how entities might choose to go about complying with those rules and
statutes.\6\ But they may not address all situations. Where there are
multiple methods of compliance that are permitted by the applicable
rules and statutes, an entity can make its own business decision
regarding which method to use, and this may include a method that is
not specifically addressed in a Compliance Aid. In sum, regulated
entities are not required to comply with the Compliance Aids
themselves. Regulated entities are only required to comply with the
underlying rules and statutes.
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\4\ Under the Administrative Procedure Act, generally a ``rule''
is an agency statement of general or particular applicability and
future effect designed to implement, interpret, or prescribe law or
policy. 5 U.S.C. 551(4). The three main categories of rules are
substantive rules, interpretive rules, and general statements of
policy. Some examples of rules are regulations like Regulation Z, 12
CFR part 1026, and official interpretations like the Official
Interpretations to Regulation Z, 12 CFR part 1026, supp. I.
\5\ See, e.g., Golden & Zimmerman, LLC v. Domenech, 599 F.3d
426, 432 (4th Cir. 2010) (agency documents like FAQs that ``restate
or report what already exists in the relevant body of statutes,
regulations, and rulings'' are not themselves rules under the
Administrative Procedure Act).
\6\ See, e.g., Indus. Safety Equip. Ass'n, Inc. v. EPA, 837 F.2d
1115, 1120-21 (D.C. Cir. 1988) (an agency's ``hortatory advice''
regarding potential methods for complying with a rule is not itself
a rule under the Administrative Procedure Act).
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Compliance Aids are designed to accurately summarize and illustrate
the underlying rules and statutes. Accordingly, when exercising its
enforcement and supervisory discretion, the Bureau does not intend to
sanction, or ask a court to sanction, entities that reasonably rely on
Compliance Aids.
II. Regulatory Requirements
This policy statement constitutes a general statement of policy
that is exempt from the notice and comment rulemaking requirements of
the Administrative Procedure Act.\7\ It is intended to provide
information regarding the Bureau's general plans to exercise its
discretion and does not confer any rights. Because no notice of
proposed rulemaking is required, the Regulatory Flexibility Act does
not require an initial or final regulatory flexibility analysis.\8\ The
Bureau has also determined that this policy statement does not impose
any new or revise any existing recordkeeping, reporting, or disclosure
requirements on covered entities or members of the public that would be
collections of information requiring approval by the Office of
Management and Budget under the Paperwork Reduction Act.\9\
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\7\ 5 U.S.C. 553(b). However, this is not a ``statement of
policy'' as that term is specifically used in Regulation X, 12 CFR
1024.4(a)(1)(ii).
\8\ 5 U.S.C. 603(a), 604(a).
\9\ 44 U.S.C. 3501-3521.
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Pursuant to the Congressional Review Act,\10\ the Bureau will
submit a report containing this policy statement and other required
information to the United States Senate, the United States House of
Representatives, and the Comptroller General of the United States prior
to its applicability date. The Office of Information and Regulatory
Affairs has designated this policy statement as not a ``major rule'' as
defined by 5 U.S.C. 804(2).
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\10\ 5 U.S.C. 801-808.
[[Page 4580]]
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Dated: January 10, 2020.
Kathleen L. Kraninger,
Director, Bureau of Consumer Financial Protection.
[FR Doc. 2020-00648 Filed 1-24-20; 8:45 am]
BILLING CODE 4810-AM-P
