[Federal Register Volume 79, Number 117 (Wednesday, June 18, 2014)]
[Rules and Regulations]
[Pages 34622-34623]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-14228]
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BUREAU OF CONSUMER FINANCIAL PROTECTION
12 CFR Part 1081
[Docket No.: CFPB-2013-0030]
RIN 3170-AA29
Rules of Practice for Issuance of Temporary Cease-and-Desist
Orders
AGENCY: Bureau of Consumer Financial Protection.
ACTION: Final rule.
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SUMMARY: On September 26, 2013, 78 FR 59163, the Consumer Financial
Protection Bureau (Bureau) published in the Federal Register an interim
final rule establishing procedures for the issuance of a temporary
cease-and-desist order (TCDO) pursuant to section 1053(c) of the Dodd-
Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act),
which requires the Bureau to prescribe rules establishing procedures
for the conduct of adjudication proceedings. After reviewing and
considering the single public comment offered on its interim final
rule, the Bureau adopts the interim final rule without change.
DATES: This final rule takes effect on July 18, 2014.
FOR FURTHER INFORMATION CONTACT: John R. Coleman, Senior Counsel, Legal
Division, Consumer Financial Protection Bureau, 1700 G Street NW.,
Washington, DC 20552; at (202) 435-7254.
SUPPLEMENTARY INFORMATION:
I. Background
On June 29, 2012, the Bureau published in the Federal Register the
final Rules of Practice for Adjudication Proceedings pursuant to
sections 1022(b)(1) and 1053(e) of the Dodd-Frank Act, 12 U.S.C.
5512(b)(1) & 5563(e).\1\ That final rule, however, does not apply to
the issuance of a TCDO pursuant to section 1053(c) of the Dodd-Frank
Act.\2\ The Bureau previously invited comments as to whether special
rules governing such proceedings are necessary and, if so, what the
rules should provide.\3\ One commenter recommended that the Bureau
promulgate rules governing temporary cease-and-desist proceedings
initiated pursuant to section 1053(c) of the Dodd-Frank Act and pointed
to the Federal Deposit Insurance Corporation's (FDIC) rules governing
temporary cease-and-desist proceedings, 12 CFR 308.131, as an example
of such rules.\4\
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\1\ See 77 FR 39058 (June 29, 2012) (codified at 12 CFR Part
1081).
\2\ Id. at 39058.
\3\ See 76 FR 45338, 45338 (July 28, 2011).
\4\ See 77 FR 39058, 39060 (June 29, 2012).
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On September 26, 2013, 78 FR 59163, the Bureau published its
interim final rule establishing procedures for the issuance of a
temporary cease-and-desist order (TCDO) pursuant to section 1053(c) of
the Dodd-Frank Act. In developing the interim final rule, the Bureau
considered the procedures related to temporary cease-and-desist orders
that are followed by other regulatory agencies, including the FDIC, the
Securities and Exchange Commission, and the Office of the Comptroller
of the Currency. The interim final rule most closely follows the FDIC's
approach as codified in 12 CFR 308.131. The Bureau issued the interim
final rule to clarify (1) the basis for the issuance of a TCDO; (2) the
content, scope, and form of a TCDO; (3) the procedures governing the
issuance of a TCDO and the remedies available to the Bureau in issuing
a TCDO; and (4) the rights of persons subject to a TCDO.
The interim final rule described each section of the rule and
explained the basis of the rule with reference to rules of other
agencies as appropriate. After reviewing and considering the single
public comment offered, the Bureau adopts the interim final rule
without change.
II. Legal Authority
The Bureau promulgates this final rule pursuant to its authority to
implement section 1053 of the Dodd-Frank Act, 12 U.S.C. 5563(e), as
well as its general rulemaking authority to promulgate rules necessary
or appropriate to carry out the Federal consumer financial laws, 12
U.S.C. 5512(b)(1).
III. Public Comment on the Interim Final Rule
In response to the interim final rule, the Bureau received one
comment letter that did not contain any specific comments or
suggestions pertaining to the interim final rule. Accordingly, the
Bureau is adopting the interim final rule without change.
IV. Section 1022(b) Provisions
In developing the interim final and final rules, the Bureau has
considered the potential benefits, costs, and impacts and has consulted
or offered to consult with the prudential regulators, the Department of
Housing and Urban Development, and the Federal Trade Commission,
including with regard to consistency with any prudential, market, or
systemic objectives administered by such agencies.\5\
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\5\ Section 1022(b)(2)(A) of the Dodd-Frank Act calls for the
Bureau to consider the potential benefits and costs of a regulation
to consumers and covered persons, including the potential reduction
of access by consumers to consumer financial products or services;
the impact on depository institutions and credit unions with $10
billion or less in total assets as described in section 1026 of the
Dodd-Frank Act; and the impact on consumers in rural areas. Section
1022(b)(2)(B) directs the Bureau to consult with the appropriate
prudential regulators or other Federal agencies regarding
consistency with objectives those agencies administer. The manner
and extent to which these provisions apply to a rulemaking of this
kind, which establishes Bureau procedures and imposes no standards
of conduct, is unclear. Nevertheless, to inform this rulemaking more
fully, the Bureau performed the analyses and consultations described
in those provisions of the Dodd-Frank Act.
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The Dodd-Frank Act requires the Bureau to prescribe rules
establishing such procedures as may be necessary to carry out section
1053 of the Act, which provides for temporary cease-and-orders in
subsection (c). The final rule itself does not impose significant costs
upon covered persons, but, consistent with section 1053, provides a
straightforward and efficient process for the issuance of a temporary
cease-and-desist order, and a direct route to judicial review.
The final rule has no unique impact on insured depository
institutions or insured credit unions with $10 billion or less in
assets described in section 1026(a) of the Dodd-Frank Act, nor does it
have a unique impact on rural consumers.
V. Regulatory Requirements
As the Bureau noted in publishing the interim final rule, this rule
relates solely
[[Page 34623]]
to agency procedure and practice and, thus, is not subject to the
notice and comment requirements of the Administrative Procedure Act, 5
U.S.C. 553(b). Because no notice of proposed rulemaking is required,
these regulations are not a ``rule'' as defined by the Regulatory
Flexibility Act, 5 U.S.C. 601(2), and no initial or final regulatory
flexibility analysis is required.
VI. Paperwork Reduction Act
The Bureau has determined that the regulations in this subpart do
not impose any new recordkeeping, reporting, or disclosure requirements
on covered entities or members of the public that would constitute
collections of information requiring approval under the Paperwork
Reduction Act, 44 U.S.C. 3501 et seq.
List of Subjects in 12 CFR Part 1081
Administrative practice and procedure, Banking, Banks, Consumer
protection, Credit, Credit unions, Law enforcement, National banks,
Savings associations, Trade practices.
Authority and Issuance
For the reasons set forth above, the interim final rule amending 12
CFR part 1081 published at 78 FR 59163, September 26, 2013, is adopted
as a final rule without change.
Dated: June--10, 2014.
Richard Cordray,
Director, Bureau of Consumer Financial Protection.
[FR Doc. 2014-14228 Filed 6-17-14; 8:45 am]
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