In late February, the Consumer Financial Protection Bureau (the “CFPB”) issued a new statement of policy regarding “Compliance Aids”, a new designation it will use to explain a new category of guidance the CFPB provides the industry. The new Policy Statement clarifies the legal status and role in guidance these will play.
An important role of the CFPB under the Dodd-Frank Wall Street Reform and Consumer Protection Act is to provide guidance to the industry on how to implement the law. One of the means the CFPB takes to do this is by providing various aids to the industry that detail how to comply with the law’s requirements in particular situations. Examples of these aids include the Small Entity Compliance Guides, Guide to Forms, Compliance Checklists, and Frequently Asked Questions.
The new Policy Statement creates a new designation for this category of guidance provided by the CFPB, to be called “Compliance Aids.” The policy clarifies that regulated entities are not required to comply with the Compliance Aids themselves, rather they must comply only with the underlying regulations, rules and statutes. Further, the CFPB does not intend to sanction an entity for reasonable reliance on a Compliance Aid.
For further information and to read the CFPB’s Policy Statement on Compliance Aids, visit the CFPB’s site here.
