Pursuant to a Memorandum of Understanding (MOU) dated January 20, 2012, the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) will work together to coordinate their enforcement and oversight of consumer financial products and services. Since there is some overlap between the regulatory responsibilities of the CFPB, which was formed on July 21, 2011 pursuant to the Dodd-Frank Act, and those of the FTC, the MOU is intended to prevent duplication of efforts. Here are the highlights of the MOU, taken from the press release:
- The FTC and the CFPB agree to meet regularly to coordinate upcoming law enforcement, rulemaking, and other activities.
- Each agency agrees to inform the other, absent exigent circumstances, prior to initiating an investigation or bringing an enforcement action. This notice will prevent duplicative or conflicting enforcement efforts and undue burdens on industry.
- The two agencies agree to consult each other on rulemaking and guidance initiatives to promote consistency and reflect the experience and expertise of both agencies.
- They agree to cooperate on consumer education efforts to promote consistency of messages and maximum use of resources.
- They agree to share consumer complaints with each other.
Check dodd-frank.com frequently for updates on the Dodd-Frank Act and other important securities law matters.