Regulators clarify guidance isn't law; violations won't bring enforcement actions

This story appeared in Bank Digest.   

Supervisory guidance "does not have the force and effect of law," according to an interagency statement by the bank, thrift, and credit union regulatory agencies. Enforcement actions are not taken for violations of supervisory guidance, the agencies said. The statement was issued by the Federal Reserve Board, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, Consumer Financial Protection Bureau, and National Credit Union Administration. 

According to the statement, supervisory guidance is intended to outline regulators' supervisory expectations and priorities and describe appropriate practices. Specific practices that are consistent with legal or regulatory requirements might be discussed, but only as examples. 

Representative Blaine Luetkemeyer (R-Mo) applauded the interagency statement, saying that regulators had for too long "inappropriately used guidance as if it had the full force of a formal rulemaking."