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10.10 Supervision of Supervised Nondepositories

<< Title X Overview

10.10 Supervision of Supervised Nondepositories



10.10.   Supervision of Supervised Nondepositories.  The Bureau will require reports from, and conduct examinations on a periodic basis of, a Supervised Nondepository to (i) assess its compliance with Federal consumer financial law; (ii) obtain information about the activities and compliance systems or procedures of the entity; and (iii) detect and assess risks to consumers and to markets for consumer financial products and services.  Supervision will be risked-based and will take into consideration the asset size of the Covered Person, the volume of transactions involving consumer financial products in which the Covered Person engages, the risks to consumers created by the provision of such consumer financial products, the extent to which such institutions are subject to State oversight, and any other relevant factors. 

Bureau supervision will be coordinated with the prudential regulator and State banking regulator supervision.  The Bureau will use public information, reports provided by other Federal agencies, and reports provided by State regulators to supplement its own reports and examinations.  The Bureau may require Covered Persons to generate, provide, or retain records for the purposes of facilitating supervision and assessing and detecting risks to consumers.  The Bureau may require background checks for principals, officers, directors, or key personnel, and bonding or other appropriate financial requirements. 

The Bureau generally has exclusive authority to conduct examinations and enforce Federal consumer financial law in regard to a Supervised Nondepository, subject to an agreement with the FTC for coordinating enforcement actions.  Any Federal agency otherwise authorized to enforce a Federal consumer financial law may recommend that the Bureau initiate an enforcement action.

As a general matter, the Bureau will have exclusive authority to issue and enforce regulations with regard to a Supervised Nondepository.