In a blog post, Rohit Chopra, Director of the Consumer Financial Protection Bureau (“CFPB”), announced the CFPB’s intent to re-examine and update a broad range of consumer financial regulations. The goal of this re-examination, according to Director Chopra, is the simplification of what he brands an “overly complicated” regulatory landscape. Consequently, the CFPB plans to re-examine landmark rules inherited from other agencies or promulgated in the first decade of the CFPB’s existence, as well as the regulatory implementation of longstanding Congressional directives.
The CFPB argues that regulators have historically issued “overly complicated and tailored rules for the existing regulatory landscape.” The CFPB plans to issue instead “bright-line” rules and guidance that “more clearly communicate[s] the agency’s expectations in simple and straight-forward terms.” The CFPB anticipates that such bright-line rules will decrease compliance costs, close loopholes and promote consistency among enforcement agencies, incentivizing entities to direct innovation toward “better serving consumer,” as distinct from innovating for “regulatory evasion”. Read More