Alert May 29, 2012

CFPB Establishes New Ethics and Compliance Program

The CFPB published new ethics regulations, applicable to CFPB employees, which are designed to supplement existing government ethics laws and regulations.  The new rules are similar to the rules imposed by other financial regulatory agencies, but have also been modified to reflect the scope of the CFPB’s supervisory authority over both banks and nonbanks.  Key components of the new regulations establish restrictions and prohibitions on:
  • Outside employment and business activities;
  • Ownership of certain financial interests;
  • Seeking, obtaining or renegotiating credit and indebtedness;
  • Recommendations concerning debt and equity interests;
  • Participating in certain CFPB matters based on credit or indebtedness;
  • Purchasing certain assets; and
  • Participating in particular matters involving outside entities.

Comments are due June 26, 2012, the effective date of the rules. Click here for the press release and here for the rules.