Agency Watchdogs Recommend Improvements in Coordination

The inspectors general for the prudential regulatory agencies and the Consumer Financial Protection Bureau today released a report on how the agencies are coordinating their regulatory activities. While the watchdogs generally found that activities were coordinated consistent with the Dodd-Frank Act and an interagency memorandum of understanding, their report identified some “opportunities for improved coordination.”

Specifically, the inspectors general recommended conducting more simultanous exams, better communicating among themselves about matters identified in supervisory letters, developing a standard CFPB process for notifying the prudential regulators about potential consumer compliance lapses by the entities they supervise and more promptly notifying prudential regulators when the CFPB seeks information from entities it does not directly supervise.