U.S. financial watchdogs have quelled industry concerns that agencies use non-binding rules to fuel enforcement action, downplaying the legal weight of supervisory guidance they issue.
The Consumer Financial Protection Bureau (CFPB), along with the Federal Reserve and other banking agencies, last week reaffirmed that supervisory guidance “does not hold the force and effect of law.”
Advisories, interagency statements, bulletins, policy statements or questions and answers are intended to “outline expectations and priorities” rather than arm authorities with an additional enforcement tool.
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