FED – FED adopts final rule outlining & confirming the use of supervisory guidance for regulated institutions

The FED on Wednesday adopted a final rule outlining & confirming the use of supervisory guidance for regulated institutions. The final rule generally codifies a statement issued in September 2018 clarifying the differences between regulations & guidance & is substantially similar to the proposal issued last year.

Unlike a law or regulation, supervisory guidance does not have the force & effect of law, & the agencies do not take enforcement actions based on supervisory guidance. Rather, guidance outlines expectations & priorities, or articulates views regarding appropriate practices for a specific subject.

The rule will be effective 30 days after publication in the Federal Register & mirrors the rules issued by the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, the National Credit Union Administration, & the Office of the Comptroller of the Currency.

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