March 31, 2021

Federal Reserve Board adopts final rule outlining and confirming the use of supervisory guidance for regulated institutions

For release at 5:00 p.m. EDT

The Federal Reserve Board on Wednesday adopted a final rule outlining and confirming the use of supervisory guidance for regulated institutions. The final rule generally codifies a statement issued in September 2018 clarifying the differences between regulations and guidance and is substantially similar to the proposal issued last year.

Unlike a law or regulation, supervisory guidance does not have the force and effect of law, and the agencies do not take enforcement actions based on supervisory guidance. Rather, guidance outlines expectations and priorities, or articulates views regarding appropriate practices for a specific subject.

The rule will be effective 30 days after publication in the Federal Register and mirrors the rules issued by the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency.

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Last Update: May 14, 2021