CFPB Establishes Standard Governing Public Release of Decisions and Orders

The CFPB amended its procedures to clarify the situations in which the CFTC is likely to release publicly an enforcement decision or order, and to establish a process for respondents to object to the publication.

After considering feedback on its recently updated procedural rule on supervisory authority over certain nonbank covered persons based on risk, the CFPB determined that "the Director will not release information in a decision or order [regarding nonbank firms] to the extent it would be exempt from disclosure under [Freedom of Information Act] Exemptions 4 and 6 or the Director determines there is other good cause." The CFPB clarified that respondents will still be permitted to argue a case for "good cause," but said that it generally expects to only withhold information (i) about specific violations that are otherwise not made public and (ii) where the CFPB determines there is a risk of harm to the supervisory process that outweighs the public interest in transparency. Firms that are the subject of decisions or orders will have 10 days from the issuance of the order to file a response.

This action follows statements by CFPB Director Rohit Chopra that the agency will increase its oversight over nonbank companies engaged in financial services (see previous coverage).