WASHINGTON—The Bureau of Consumer Financial Protection has issued a proposal to create a "sandbox" under its disclosure trial programs policy.
The policy, which went into effect October 2013, details the Bureau's process to approve limited-time exemptions for financial institutions from current federal disclosure laws, so they can research and test informative, cost-effective disclosures. However, in the nearly five years the policy has been in place, the Bureau has yet to approve a program, NAFCU noted.
With the proposed changes, the Bureau said it hopes to:
- Reduce the application burden and review time frame
- Increase guidance regarding the testing time frame
- Specify procedures for extensions of successful trial disclosure programs
- Provide for coordination with existing or future programs offered by other regulators designed to facilitate innovation
Commenting on the original policy proposal, NAFCU suggested offering grants to participants or allowing a group to work and participate together in the program. The association has also emphasized the need for faster determinations on applications and for additional flexibility within the review processes.
Comments on the proposed changes are due to the bureau Oct. 10.