The Center for Capital Markets Competitiveness (“CCMC”) appreciates the opportunity to comment on the Consumer Financial Protection Bureau’s (“CFPB”) procedural rule adding a mechanism for the CFPB to make public final decisions and orders establishing supervisory authority over certain nonbank covered persons (the “2022 Rule”).
Congress granted the CFPB sweeping regulatory authority, including the power to write rules, supervise covered entities, and enforce statutory and regulatory requirements. With respect to the CFPB’s supervisory authority, Congress took a varied approach. It subjected certain covered persons to supervision directly, authorized the CFPB to supervise larger participants of particular market segments as identified by rule, and permitted the CFPB to impose supervision on other nonbank covered entities that it determined, by order and after notice to that covered person, are “engaging, or ha[ve] engaged, in conduct that poses risks to consumers with regard to the offering or provision of consumer financial products or services.” In 2013, the CFPB promulgated a rule implementing its risk-based authority to supervise this third category of covered persons (the “2013 Rule”).