Developments in Securities Regulation, Corporate Governance, Capital Markets, M&A and Other Topics of Interest. MORE

The CFPB recently began issuing examination reports and supervisory letters to financial service providers that it supervises.  It has also announced a policy that would allow supervised entities to appeal certain supervisory findings in those examination reports and supervisory letters.

An entity may appeal final CFPB compliance ratings that are less than satisfactory or any underlying adverse finding, or adverse findings conveyed to an entity in a supervisory letter. Adverse findings are those that result in a “Matter Requiring Attention” by the board of directors or principal(s) of the entity.

An entity may not appeal pursuant to this policy:

  • preliminary supervisory matters (including preliminary findings);
  • CFPB decisions to initiate supervisory measures, such as requiring memoranda of understanding;
  • enforcement actions, such as cease and desist orders; or
  • referrals of information to other regulatory agencies.

 An entity may only appeal a finding once. For example, an entity that receives a less than satisfactory rating in an examination report that is based on an earlier finding memorialized in a supervisory letter may appeal the letter or the report, but not both.

Check frequently for updated information on the JOBS Act, the Dodd-Frank Act and other important securities law matters.