Agencies Propose Regulation on the Role of Supervisory Guidance

News Release 2020-142 | October 29, 2020

Joint Release

Board of Governors of the Federal Reserve System
Consumer Financial Protection Bureau
Federal Deposit Insurance Corporation
National Credit Union Administration
Office of the Comptroller of the Currency

Five federal financial regulatory agencies today invited comment on a proposal outlining and confirming the agencies’ use of supervisory guidance for regulated institutions. The proposal would codify the statement, as amended, that was issued in September 2018 by the agencies that clarified the differences between regulations and guidance.

Unlike a law or regulation, supervisory guidance does not have the force and effect of law and the agencies do not take enforcement actions or issue supervisory criticisms based on non-compliance with supervisory guidance. Rather, supervisory guidance outlines supervisory expectations and priorities, or articulates views regarding appropriate practices for a given subject area.

In contrast to supervisory guidance, regulations do have the force and effect of law and enforcement actions can be taken if regulated institutions are in violation. Regulations are also generally required to go through the notice and comment process.

Comments will be accepted for 60 days following publication in the Federal Register.

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Media Contacts

Federal Reserve
Eric Kollig
(202) 452-2955

CFPB
Marisol Garibay
(202) 384-8538

FDIC
Julianne Fisher Breitbeil
(202) 898-6895

NCUA
Joe Adamoli
(703) 518-6330

OCC
Bryan Hubbard
(202) 649-6870

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