Fed Issues Final Rules Clarifying Role of Supervisory Guidance

The Federal Reserve today issued its final rule codifying that regulatory guidance does not have the force and effect of law, granting much of a joint petition filed by ABA and the Bank Policy Institute that sought a formal rulemaking to ensure that banking organizations would not need to rely on a 2018 interagency statement to clarify the role of guidance.

The FDIC, OCC, Consumer Financial Protection Bureau and National Credit Union Administration each issued similar final rules earlier this year. The agencies elected to adopt the final rule on an agency-by-agency basis rather than pursue a final joint rulemaking in order to better address agency-specific issues.
The Fed also published a set of frequently asked questions that address existing legal interpretations related to several of its longstanding regulations, including Regs H, K, L, O, W and Y.