Removing Barriers Blog

BCFP No-Action Letter Proposal
Posted December 10, 2018 by CUNA Advocacy

The BCFP Office of Innovation is slated to issue a proposal in the coming days that would revise its current No-Action Letter Policy. The proposed “Policy on No-Action Letters and the BCFP Product Sandbox” would have a 60 day comment period beginning after its publication in the Federal Register.   

CUNA anticipated the release of a No-Action Letter Policy proposal prior to the end of the year given the Bureau’s recent focus on “facilitating innovation.”  While CUNA has been generally supportive of efforts to boost innovation in consumer financial services, we have also called on the Bureau to ensure any amended policies are efficient, transparent, and do not result in uneven playing fields.

During an August 2018 meeting with Assistant Director Paul Watkins, head of the Office of Innovation, CUNA encouraged the BCFP to amend its No-Action Letter Policy to provide clarity regarding enforcement and supervision expectations for a participating entity should the entity pursue and obtain an approved no-action letter.  It is expected the forthcoming proposal will provide the clarity CUNA requested in addition to fixed timelines for no-action approvals and reduced data sharing requirements.

Earlier this year, the Office of Innovation issued a separate proposal to amend its Trial Disclosure Program (TPD) Policy to increase participation. CUNA filed comments in October 2018 that backed the Bureau’s revisions but also offered several recommendations to ensure trial programs are narrow and do not excessively deviate from traditional disclosure standards.  The TDP proposal has not been finalized.