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CFPB Procedural Rule Highlights Breadth and Scope of Agencys Nonbank Supervision Program

June 11, 2012

By KEVIN PETRASIC & AMANDA JABOUR

The alert discusses a proposed rule recently issued by the Bureau of Consumer Financial Protection ("CFPB") seeking comment on procedural requirements for when the agency may designate a nonbank financial firm to be subject to its ongoing examination and supervisory jurisdiction. The Proposed Rule would implement a provision of the Dodd-Frank Act that gives the CFPB authority to supervise a nonbank covered person when it has reasonable cause to determine, after notice and an opportunity to respond, that the person is engaging or has engaged in conduct that poses risks to consumers with regard to the offering or provisions of consumer financial products or services.