Supervisory guidance is not the law, an order from the SEC on administrative hearings, and more in this issue of Consumer Financial Services Practice Digest
Regulators Confirm Supervisory Guidance Is Not Law
On September 11, 2018, regulators from multiple agencies issued a joint statement explaining the role of supervisory guidance for regulated institutions. The regulators confirmed that supervisory guidance does not have the force and effect of law, and the agencies do not take enforcement actions based on supervisory guidance. While the joint statement clarifies that supervisory guidance should not result in enforcement actions, there are a variety of mechanisms within the supervisory process that regulators can use to ensure that their supervisory guidance is followed by the financial institutions. To the extent that supervisory guidance reflects regulators' expectations for appropriate practices, such guidance likely remains highly instructive for institutions.
An Order from the SEC on Administrative Hearings – And Many Questions
In the latest development regarding federal agency adjudication and administrative law judges, the SEC issued an order, In re: Pending Administrative Proceedings, that attempts to set a path forward from the Supreme Court's decision in Lucia v. SEC earlier this summer. The Court, in that decision, found that the SEC's administrative law judges were "inferior officers" who were not properly appointed as required for "Officers of the United States" under the Constitution.
State Enforcement Activity in the Consumer Financial Services Industry
On September 7, 2018, members of Venable's Consumer Financial Services and State Attorneys General practices discussed the latest actions taken by states in the consumer finance area. To listen to a recording of the program and view the corresponding slides, please click here. A copy of the presentation can be downloaded by clicking here.