The Text of the Dodd-Frank Act
International Association of
Risk and Compliance Professionals (IARCP)
Dodd Frank Act Section 1022
SEC. 1022. RULEMAKING AUTHORITY.
(a)
IN GENERAL.—The Bureau is authorized to exercise its
authorities under Federal consumer financial law to administer,
enforce, and otherwise implement the provisions of Federal
consumer financial law.
(b)
RULEMAKING, ORDERS, AND GUIDANCE.—
(1) GENERAL AUTHORITY.—The
Director may prescribe rules and issue orders and guidance, as may
be necessary or appropriate to enable the Bureau to administer and
carry out the purposes and objectives of the Federal consumer
financial laws, and to prevent evasions thereof.
(2)
STANDARDS FOR RULEMAKING.—In
prescribing a rule under the Federal consumer financial laws—
(A) the Bureau shall consider—
(i) the potential
benefits and costs to consumers and covered persons, including the
potential reduction of access by consumers to consumer financial
products or services resulting from such rule; and
(ii)
the impact of proposed rules on covered persons, as described in
section 1026, and the impact on consumers in rural areas;
(B) the Bureau shall consult with the appropriate prudential
regulators or other Federal agencies prior to proposing a rule and
during the comment process regarding consistency with prudential,
market, or systemic objectives administered by such agencies; and
(C) if, during the consultation process described in
subparagraph (B), a prudential regulator provides the Bureau with
a written objection to the proposed rule of the Bureau or a
portion thereof, the Bureau shall include in the adopting release
a description of the objection and the basis for the Bureau
decision, if any, regarding such objection, except that nothing in
this clause shall be construed as altering or limiting the
procedures under section 1023 that may apply to any rule
prescribed by the Bureau.
(3)
EXEMPTIONS.—
(A) IN GENERAL.—The Bureau, by rule,
may conditionally or unconditionally exempt any class of covered
persons, service providers, or consumer financial products or
services, from any provision of this title, or from any rule
issued under this title, as the Bureau determines necessary or
appropriate to carry out the purposes and objectives of this
title, taking into consideration the factors
in subparagraph
(B).
(B) FACTORS.—In issuing
an exemption, as permitted under subparagraph (A), the Bureau
shall, as appropriate, take into consideration—
(i) the
total assets of the class of covered persons;
(ii) the
volume of transactions involving consumer financial products or
services in which the class of covered persons engages; and
(iii) existing provisions of law which are applicable to the
consumer financial product or service and the extent to which such
provisions provide consumers with adequate protections.
(4)
EXCLUSIVE RULEMAKING AUTHORITY.—
(A)
IN GENERAL.—Notwithstanding any other provisions of Federal
law and except as provided in section 1061(b)(5), to the extent
that a provision of Federal consumer financial law authorizes the
Bureau and another Federal agency to issue regulations under that
provision of law for purposes of assuring compliance with Federal
consumer financial law and any regulations thereunder, the Bureau
shall have the exclusive authority to prescribe rules subject to
those provisions of law.
(B)
DEFERENCE.—Notwithstanding any power granted to any Federal
agency or to the Council under this title, and subject to section
1061(b)(5)(E), the deference that a court affords to the Bureau
with respect to a determination by the Bureau regarding the
meaning or interpretation of any provision of a Federal consumer
financial law shall be applied as if the Bureau were the only
agency authorized to apply, enforce, interpret, or administer the
provisions of such Federal consumer financial law.
(c)
MONITORING.—
(1) IN GENERAL.—In
order to support its rulemaking and other functions, the Bureau
shall monitor for risks to consumers in the offering or provision
of consumer financial products or services, including developments
in markets for such products or services.
(2)
CONSIDERATIONS.—In allocating its
resources to perform the monitoring required by this section, the
Bureau may consider, among other factors—
(A) likely risks
and costs to consumers associated with buying or using a type of
consumer financial product or service;
(B) understanding by
consumers of the risks of a type of consumer financial product or
service;
(C) the legal protections applicable to the
offering or provision of a consumer financial product or service,
including the extent to which the law is likely to adequately
protect consumers;
(D) rates of growth in the offering or
provision of a consumer financial product or service;
(E)
the extent, if any, to which the risks of a consumer financial
product or service may disproportionately affect traditionally
underserved consumers; or
(F) the types, number, and other
pertinent characteristics of covered persons that offer or provide
the consumer financial product or service.
(3)
SIGNIFICANT FINDINGS.—
(A) IN
GENERAL.—The Bureau shall publish not fewer than 1 report
of significant findings of its monitoring required by this
subsection in each calendar year, beginning with the first
calendar year that begins at least 1 year after the designated
transfer date.
(B) CONFIDENTIAL
INFORMATION.—The Bureau may make public such information
obtained by the Bureau under this section as is in the public
interest, through aggregated reports or other appropriate formats
designed to protect confidential information in accordance with
paragraphs (4), (6), (8), and (9).
(4)
COLLECTION OF INFORMATION.—
(A) IN
GENERAL.—In conducting any monitoring or assessment
required by this section, the Bureau shall have the authority to
gather information from time to time regarding the organization,
business conduct, markets, and activities of covered persons and
service providers.
(B) METHODOLOGY.—In
order to gather information described in subparagraph (A), the
Bureau may—
(i) gather and compile information from a
variety of sources, including examination reports concerning
covered persons or service providers, consumer complaints,
voluntary surveys and voluntary interviews of consumers, surveys
and interviews with covered persons and service providers, and
review of available databases; and
(ii) require covered
persons and service providers participating in consumer financial
services markets to file with the Bureau, under oath or otherwise,
in such form and within such reasonable period of time as the
Bureau may prescribe by rule or order, annual nor special reports,
or answers in writing to specific questions, furnishing
information described in paragraph
(4), as necessary for
the Bureau to fulfill the monitoring, assessment, and reporting
responsibilities imposed by Congress.
(C)
LIMITATION.—The Bureau may not use
its authorities under this paragraph to obtain records from
covered persons and service providers participating in consumer
financial services markets for purposes of gathering or analyzing
the personally identifiable financial information of consumers.
(5) LIMITED INFORMATION GATHERING.—In
order to assess whether a nondepository is a covered person, as
defined in section 1002, the Bureau may require such nondepository
to file with the Bureau, under oath or otherwise, in such form and
within such reasonable period of time as the Bureau may prescribe
by rule or order, annual or special reports, or answers in writing
to specific questions.
(6)
CONFIDENTIALITY RULES.—
(A) RULEMAKING.—The Bureau
shall prescribe rules regarding the confidential treatment of
information obtained from persons in connection with the exercise
of its authorities under Federal consumer financial law.
(B) ACCESS BY THE BUREAU TO REPORTS OF OTHER
REGULATORS.—
(i) EXAMINATION AND FINANCIAL CONDITION
REPORTS.—Upon providing reasonable assurances of
confidentiality, the Bureau shall have access to any report of
examination or financial condition made by a prudential regulator
or other Federal agency having jurisdiction over a covered person
or service provider, and to all revisions made to any such report.
(ii) PROVISION OF OTHER REPORTS TO THE
BUREAU.—In addition to the reports described in clause
(i), a prudential regulator or other Federal agency having
jurisdiction over a covered person or service provider may, in its
discretion, furnish to the Bureau any other report or other
confidential supervisory information concerning any insured
depository institution, credit union, or other entity examined by
such agency under authority of any provision of Federal law.
(C) ACCESS BY OTHER REGULATORS TO
REPORTS OF THE BUREAU.—
(i) EXAMINATION REPORTS.—Upon
providing reasonable assurances of confidentiality, a prudential
regulator, a State regulator, or any other Federal agency having
jurisdiction over a covered person or
service provider shall
have access to any report of examination made by the Bureau with
respect to such person, and to all revisions made to any such
report.
(ii) PROVISION OF OTHER
REPORTS TO OTHER REGULATORS.— In addition to the reports
described in clause
(i), the Bureau may, in its discretion,
furnish to a prudential regulator or other agency having
jurisdiction over a covered person or service provider any other
report or other confidential supervisory information concerning
such person examined by the Bureau under the authority of any
other provision of Federal law.
(7)
REGISTRATION.—
(A) IN GENERAL.—The Bureau may
prescribe rules regarding registration requirements applicable to
a covered person, other than an insured depository institution,
insured credit union, or related person.
(B)
REGISTRATION INFORMATION.—Subject to
rules prescribed by the Bureau, the Bureau may publicly disclose
registration information to facilitate the ability of consumers to
identify covered persons that are registered with the Bureau.
(C) CONSULTATION WITH STATE AGENCIES.—In
developing and implementing registration requirements under this
paragraph, the Bureau shall consult with State agencies regarding
requirements or systems (including coordinated or combined systems
for registration), where appropriate.
(8)
PRIVACY CONSIDERATIONS.—In collecting
information from any person, publicly releasing information held
by the Bureau, or requiring covered persons to publicly report
information, the Bureau shall take steps to ensure that
proprietary, personal, or confidential consumer information that
is protected from public disclosure under section 552(b) or 552a
of title 5, United States Code, or any other provision of law, is
not made public under this title.
(9)
CONSUMER PRIVACY.—
(A) IN GENERAL.—The Bureau may
not obtain from a covered person or service provider any
personally identifiable financial information about a consumer
from the financial records of the covered person or service
provider, except—
(i) if the financial records are
reasonably described in a request by the Bureau and the consumer
provides written permission for the disclosure of such information
by the covered person or service provider to the Bureau; or
(ii) as may be specifically permitted or required under other
applicable provisions of law and in accordance with the Right to
Financial Privacy Act of 1978 (12 U.S.C. 3401 et seq.).
(B)
TREATMENT OF COVERED PERSON OR SERVICE
PROVIDER.—
With respect to the application of any
provision of the Right to Financial Privacy Act of 1978, to a
disclosure by a covered person or service provider subject to this
subsection, the covered person or service provider shall be
treated as if it were a ‘‘financial institution’’, as defined in
section 1101 of that Act (12 U.S.C. 3401).
(d)
ASSESSMENT OF SIGNIFICANT RULES.—
(1)
IN GENERAL.—The Bureau shall conduct an assessment of each
significant rule or order adopted by the Bureau under Federal
consumer financial law.
The assessment shall address,
among other relevant factors, the effectiveness of the rule or
order in meeting the purposes and objectives of this title and the
specific goals stated by the Bureau.
The assessment shall
reflect available evidence and any data that the Bureau reasonably
may collect.
(2) REPORTS.—The
Bureau shall publish a report of its assessment under this
subsection not later than 5 years after the effective date of the
subject rule or order.
(3) PUBLIC
COMMENT REQUIRED.—Before publishing a report of its
assessment, the Bureau shall invite public comment on
recommendations for modifying, expanding, or eliminating the newly
adopted significant rule or order.
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