WASHINGTON—In follow-up to the CFPB’s announcementit will begin exercising supervisory authority over fintechs under what to date has been largely unused legal provision of the Dodd-Frank Act to examine nonbank financial entities and risks to consumers, NAFCU has offered its feedback in a new letter.
In addition, the letter discusses the relatedprocedural rulethat would allow the Bureau to make final decisions and orders from its supervision of these nonbank entities public. In the letter, NAFCU Regulatory Affairs Counsel James Akini suggested the benefits that consumers and the consumer finance market will see as a result of the increased transparency provided by the procedural rule.
Akin reiterated that NAFCU supports both the decision to exercise supervisory authority of nonbank entities that pose a risk to consumers and the proposed procedural rule to provide the bureau with a mechanism to release final orders and decisions from the risk determination. In addition, Akin highlights the risks that “underregulated market players,” like fintechs, can pose to consumers and the need for increased supervision.
‘Level Playing Field’
“NAFCU encourages all relevant regulators to ensure that when fintechs compete with traditional financial institutions, they do so on a level playing field where smart regulations and consumer protections apply to all actors in the consumer marketplace,” wrote Akin.
As CUToday.info reported earlier, the letter follows a similar message from CUNA to the CFPB.
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