CFPB Issues New Policies Intended to Foster Innovation

As part of its ongoing effort to foster financial services innovation, the Consumer Financial Protection Bureau yesterday issued three new policies to help banks safely and compliantly develop innovative products and services.

The bureau published an updated no-action letter policy, a trial disclosure program policy and a compliance assistance sandbox policy. It also issued its first no-action letter under the new policy.

The no-action letter policy makes improvements to the bureau’s existing 2016 policy, establishing a more streamlined review process, among other things. The trial disclosure program policy enables institutions to conduct in-market testing of alternative disclosures for a limited time, subject to CFPB approval. Finally, the sandbox will provide a safe harbor for banks to test products or services that have been approved by the bureau.

The CFPB also announced the creation of the American Consumer Financial Innovation Network—a partnership with several state bank regulators to enhance coordination and facilitate innovation.

View the policy documents. Learn more about the ACFIN.