The Consumer Financial Protection Bureau (“CFPB”) recently published a Nonbank Registration Orders Rule Coverage Chart that nonbank entities can review to determine if they are required to register an order issued against them under the Nonbank Registration Orders Rule (the “Rule”). Nonbank entities that are subject to any order must register the order with the CFPB’s Nonbank Registry if the order is a “covered order” and the entity is a “covered nonbank” as defined under the Rule. 12 C.F.R. § 1092.201(d) and (e).
A “covered nonbank” is defined in 12 C.F.R. § 1092.201(d) as a nonbank financial services provider that is a covered person under the Dodd-Frank Act and not subject to any of the coverage exceptions. The nonbank coverage exceptions include insured depository institutions or insured credit unions; a person who is a covered person solely due to being a related person under the Dodd-Frank Act; a state, or a federally-recognized Indian tribe; a natural person; certain motor vehicle dealers; and a person that qualifies as a covered person under the Dodd-Frank Act but is excluded from the CFPB’s rulemaking authority.
A “covered order” is defined in 12 C.F.R. § 1092.201(e) as a final, public order issued by an agency or court, that identifies a covered nonbank by name as the subject of the order issued by a federal, state, or local agency and imposes obligations on the nonbank entity to comply with consumer protection laws. The covered order must have an effective date on or after January 1, 2017.
Nonbank entities that meet the criteria of a “covered nonbank” and are subject to a “covered order” under the Rule are required to report regulatory actions taken against them by state, federal, and local governments, and courts. Nonbank entities are also required to report any consent orders that are enforceable under settlement deals. The information will be recorded in a public registry meant to help consumers, prosecutors, and other members of the public identify bad actors and repeat offenders.
The coverage summary chart can be found on the CFPB’s Nonbank Registry portal and public database webpage along with an executive summary of the final rule, a filing instructions guide, a sample company registration form, and instructions for viewing state regulatory actions. The webpage will also publish the nonbank registry public database when it becomes available.
