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10.13 Supervision of Supervised Large Depositories

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10.13 Supervision of Supervised Large Depositories

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10.13.   Supervision of Supervised Large Depositories.  The Bureau will have exclusive authority to require reports and conduct examinations of a Supervised Large Depository in order to: (i) assess compliance with the requirements of Federal consumer financial laws; (ii) obtain information about the activities subject to such laws and the associated compliance systems or procedures; and (iii) detect and assess risks to consumers and to markets for consumer financial products. 

To the extent that the Bureau and another Federal agency are authorized to enforce a Federal consumer law with respect to a Supervised Large Depository, the Bureau will have primary authority to enforce that law.   A Federal agency may recommend in writing to the Bureau that the Bureau initiate an enforcement proceeding in regard to a Supervised Large Depository.  If the Bureau does not initiate such a proceeding within 120 days of receiving such a recommendation, the referring agency has backup authority to initiate enforcement proceedings.  Service providers to Supervised Large Depositories will be subject to the authority of the Bureau to the same extent as if the Bureau were an appropriate Federal banking agency under the Bank Service Company Act.[§1025]

            10.13.1.            Coordination with Other Regulators.  The Bureau is directed to coordinate with existing regulators (both Federal and State) and will use existing reports to the fullest extent possible.  The Bureau will have primary authority over Supervised Large Depositories to enforce Federal consumer financial law.  The Bureau will coordinate the scheduling of examinations of Supervised Large Depositories with the supervisory activities of the prudential regulator, conducting simultaneous examinations unless the institution requests the examinations be conducted separately.  Draft reports will be shared between the agencies.  Examinations will be coordinated with State bank supervisors in the same manner.

If supervisory determinations of the Bureau and the prudential regulator are conflicting, a Supervised Large Depository may request that the agencies coordinate and present a joint statement of coordinated supervisory action.  A joint statement is to be provided within 30 days of the request.  If the joint statement is not made or an agency takes action without the consent of the other agency, a Supervised Large Depository may appeal to a governing panel, composed of a representative of the Bureau, a representative of the other agency, and a representative of another agency not involved in the dispute.  The governing panel will, by majority vote, provide a final determination within 30 days of the appeal being made and all requested information being provided, unless a longer period is agreed to by all involved parties.  The information contained in the determination will be published.  The Bureau and other agencies will provide safeguards from retaliation against the Supervised Large Depository.  These requirements do not apply to decisions to appoint a conservator, receiver, or liquidating agent or a decision to take action under the Prompt Corrective Action provisions of the FDI Act.