CFPB and AGs Working Together on New Financial Innovation Initiative
The Consumer Financial Protection Bureau last week announced the launching of the American Consumer Financial Innovation Network to help facilitate innovation in the financial space by enhancing “coordination among federal and state regulators.” This announcement was made in conjunction with its announcements of the final No Action Letter, Product Sandbox, and Trial Disclosure Program policies, which my partner Richard Horn has written about here. The Bureau stated that all state regulators were invited to join the network. Interestingly, the initial members of the network are limited to the Attorneys General of Alabama, Arizona, Georgia, Indiana, South Carolina, Tennessee, and Utah. ACFIN members will share information to facilitate coordination and work together on innovation-related policies and programs.
ACFIN stated shared objectives with the state regulators include:
· Competition
· Consumer access
· Financial inclusion
· Promotion of regulatory certainty for innovators
· Keeping pace with market innovations
· Helping to ensure that innovations are free from fraud, discrimination, and deceptive practices
In announcing the initiative, CFPB Director Kathleen L. Kraninger stated “Federal and state coordination promotes consistency in the regulation of consumer financial products and services while facilitating consumer-beneficial innovation. ACFIN will provide a platform for Federal and State regulators to coordinate with each other as they develop new rules of the road and apply existing ones.”
The CFPB press release announcing this initiative can be found here and the ACFIN Charter can be found here. The CFPB’s press release on its related final policies can be found here.
Garris Horn frequently represents clients interpreting CFPB initiatives and rules. For more information on this new program, or to discuss any other CFPB-related matters, contact Troy Garris directly at 301-461-8952 or troy@garrishorn.com.
