62118 Federal Register / Vol. 79, No. 200 / Thursday, October 16, 2014 / Notices 

is establishing a Climate and Marine 

Resources Task Force and an 

Aquaculture Task Force to assist it in 

the development of recommendations to 

the Secretary on policies, programs, and 

regulations critical to the mission and 

goals of the NMFS. 

Climate and Marine Resources Task 

Force 

This Climate and Marine Resources 

Task Force is being created as a 

communication conduit for stakeholder 

input to MAFAC and NOAA Leadership 

on the production, delivery, and use of 

climate-related information in fulfilling 

NOAA Fisheries mission activities. 

NOAA’s marine stewardship mandates 

include consideration of changing 

environmental conditions and other 

factors on marine resources and the 

industries that depend on these 

resources. The Task Force will provide 

review and input on the NOAA 

Fisheries Climate Science Strategy 

(pending later this year), regional 

implementation plans, identification of 

community impacts related to climate 

change and fisheries, and other topics as 

needed. 

This Task Force will consist of 12 to 

15 individuals. MAFAC is seeking 

individuals that have experience with 

the production, delivery and/or use of 

climate-related information in marine 

resource management or have 

familiarity with how science, data, and 

information influences policy and 

regulatory decision making. It is not 

intended that all nominees be scientists 

or researchers. Individuals should 

represent the diverse constituent groups 

or partners from across U.S. regions and 

territories that interact with NOAA 

Fisheries: Commercial, recreational, or 

subsistence fisheries; aquaculture; 

seafood industries; academia; tribes; 

environmental, protected resources, 

marine habitat, and consumer groups; 

and/or other related national interests. 

It is intended that the Task Force be 

established for an initial period of 3 

years with a possibility of extending 

that term if deemed necessary by NOAA 

Fisheries and MAFAC. Task Force 

members will be appointed for 2-year 

terms and should be able to fulfill the 

time commitments required for periodic 

meetings (mostly by webinar or 

teleconference, and potentially inperson). 

Aquaculture Task Force 

MAFAC has a longstanding history of 

engagement on aquaculture issues. The 

Aquaculture Task Force is being created 

to expand the aquaculture expertise of 

MAFAC and to help MAFAC provide 

advice and input to NOAA Leadership 

on the NOAA Aquaculture Program and 

its future activities. The Task Force will 

assist NOAA in fulfilling its central role 

in developing and implementing 

policies that enable marine aquaculture 

and work to ensure that aquaculture 

complies with existing Federal laws and 

regulations that NOAA enforces under 

its marine stewardship mission. 

Some example tasks of the new Task 

Force will include review of: NOAA’s 

progress on implementing the agency’s 

10-Year Plan for Marine Aquaculture 

(from 2007), priorities to include in 

strategic planning for the aquaculture 

program, and tasks to support NOAA’s 

work with the Regulatory Task Force of 

the Interagency Working Group on 

Aquaculture. 

This Task Force will consist of no 

more than 10 individuals who have 

expertise in all aspects of marine 

aquaculture; the science, research, and 

development to advance aquaculture; 

and the management and permitting of 

aquaculture at the Federal, state, and 

local levels. It is intended that Task 

Force members will come from across 

all U.S. regions and territories. 

This Task Force will be established 

for an initial period of 1 year with a 

possibility of extending that term if 

deemed necessary by NOAA Fisheries 

and MAFAC. Task Force members will 

be appointed for 1-year terms and 

should be able to fulfill the time 

commitments required for periodic 

meetings (mostly by webinar or 

teleconference, and potentially inperson). 

Nomination Materials 

Each nomination submission should 

identify which Task Force the nominee 

is applying to and include: a cover letter 

describing the nominee’s qualifications 

and interest in serving on the specific 

task force, resume or curriculum vitae of 

the nominee, and up to two 

recommendation letters describing the 

nominee’s qualifications and interest. 

Self-nominations are acceptable. The 

following contact information should 

accompany each nominee’s submission: 

full name, address, telephone number, 

fax number, and email address. 

Nominations should be sent to (see 

ADDRESSES) and must be received by 

November 17, 2014. Information about 

MAFAC, its Committee Charter, current 

membership, and activities can be 

viewed at the NMFS’ Web page at 

www.nmfs.noaa.gov/mafac.htm. 

Dated: October 9, 2014. 

Eileen Sobeck, 

Assistant Administrator for Fisheries, 

National Marine Fisheries Service. 

[FR Doc. 2014–24627 Filed 10–15–14; 8:45 am] 

BILLING CODE 3510–22–P 

BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

[Docket No. CFPB–2014–0025] 

Policy On No-Action Letters 

AGENCY: Bureau of Consumer Financial 

Protection. 

ACTION: Notice of proposed policy and 

proposed information collection; 

request for comment. 

SUMMARY: The Consumer Financial 

Protection Bureau (Bureau) invites the 

public to take this opportunity to 

comment on its proposed Policy on NoAction Letters (Policy), which is 

intended to further its objectives under 

section 1021 of the Dodd-Frank Wall 

Street Reform and Consumer Protection 

Act of 2010 (Dodd-Frank Act), and also 

a proposed information collection 

associated with applications submitted 

by applicants requesting no-action 

letters under the proposed Policy as 

required by the Paperwork Reduction 

Act of 1995. 

DATES: Written comments are 

encouraged and must be received on or 

before December 15, 2014 to be assured 

of consideration. 

ADDRESSES: You may submit comments, 

identified by the proposal’s title, 

‘‘Policy on No-Action Letters,’’ and 

docket number (see above), by any of 

the following methods: 

• Electronic: http://

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Mail: Consumer Financial 

Protection Bureau, Office of the 

Executive Secretary, 1700 G Street NW., 

Washington, DC 20552. 

• Hand Delivery/Courier: Consumer 

Financial Protection Bureau, Office of 

the Executive Secretary, 1275 First 

Street NE., Washington, DC 20002. 

Please note that comments submitted 

by fax or email and those submitted 

after the comment period will not be 

accepted. Comments will be available 

for public inspection and copying at 

1275 First Street NE., Washington, DC 

20002 between the hours of 10:00 a.m. 

and 5 p.m. eastern standard time. In 

general, all comments received will be 

posted without change to 

regulations.gov, including any personal 

information provided. Sensitive 

personal information, such as account 


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Federal Register / Vol. 79, No. 200 / Thursday, October 16, 2014 / Notices 62119 

1Section 1022(b)(1) of the Dodd-Frank Act 

authorizes the Director to prescribe rules and issue 

orders and guidance, as may be necessary or 

appropriate to enable the Bureau to administer and 

carry out the purposes and objectives of the Federal 

consumer financial laws, and to prevent evasions 

thereof. 

numbers or social security numbers, 

should not be included. 

FOR FURTHER INFORMATION CONTACT: For 

additional information about the 

proposed Policy please contact Dan 

Quan, Senior Advisor to the Director, 

Consumer Financial Protection Bureau, 

(202) 435–7678. Documentation 

prepared in support of the information 

collection request is available at 

www.regulations.gov. 

Requests for additional information 

on the proposed information collection 

should be directed to the Consumer 

Financial Protection Bureau, Attention: 

PRA Office, 1700 G Street NW., 

Washington, DC 20552, (202) 435–9575, 

or email: PRA@cfpb.gov. Please do not 

submit comments to this mailbox. 

SUPPLEMENTARY INFORMATION: 

I. Policy on No-Action Letters 

Abstract. In specifying the purposes, 

objectives, and functions of the Bureau 

in section 1021 of the Dodd-Frank Act, 

Congress authorized the Bureau to 

exercise its authorities for the purpose 

of ensuring that markets for consumer 

financial products and services operate 

transparently and efficiently to facilitate 

access and innovation.1 In line with the 

Bureau’s authority, it is proposing the 

Policy that is laid out in in the next 

section below. Under the proposed 

Policy, Bureau staff would, in its 

discretion, issue no-action letters 

(NALs) to specific applicants in 

instances involving innovative financial 

products or services that promise 

substantial consumer benefit where 

there is substantial uncertainty whether 

or how specific provisions of statutes or 

regulations implemented by the Bureau 

would be applied (for example if, 

because of intervening technological 

developments, the application of 

statutes and regulations to a new project 

is novel and complicated). The Policy is 

also designed to enhance compliance 

with applicable federal consumer 

financial laws. A NAL would advise the 

recipient that, subject to its stated 

limitations, the staff has no present 

intention to recommend initiation of an 

enforcement or supervisory action 

against the requester with respect to a 

specified matter. NALs would be subject 

to modification or revocation at any 

time in the sole discretion of the staff, 

and may be conditioned on particular 

undertakings by the applicant with 

respect to product or service usage and 

data-sharing with the Bureau. Issued 

NALs would be publicly disclosed. 

NALs would be non-binding on the 

Bureau, and would not bind courts or 

other actors who might challenge a 

NAL-recipient’s product or service, such 

as other regulators or parties in 

litigation. The Bureau believes that 

there may be significant opportunities to 

facilitate innovation and access, and 

otherwise substantially enhance 

consumer benefits, through the 

proposed Policy. 

II. Paperwork Reduction Act 

Under the Paperwork Reduction Act 

of 1995 (PRA) (44 U.S.C. 3501 et seq.), 

Federal agencies are generally required 

to seek approval from the Office of 

Management and Budget (OMB) for 

information collection requirements 

prior to implementation. Further, the 

Bureau may not conduct or sponsor a 

collection of information unless OMB 

approves the collection under the PRA 

and it displays a currently valid OMB 

control number. Notwithstanding any 

other provision of law, no person is 

required to comply with, or is subject to 

penalty for failure to comply with, a 

collection of information if the 

collection instrument does not display a 

currently valid OMB control number. 

The final policy will display the control 

number assigned by OMB. 

As part of its continuing effort to 

reduce paperwork and respondent 

burden, the Bureau conducts a 

preclearance consultation program to 

provide the general public and Federal 

agencies with an opportunity to 

comment on the new information 

collection requirements in accordance 

with the PRA (See 44 U.S.C. 

3506(c)(2)(A)). This helps ensure that: 

The public understands the Bureau’s 

requirements or instructions, 

respondents can provide the requested 

data in the desired format, reporting 

burden (time and financial resources) is 

minimized, collection instruments are 

clearly understood, and the Bureau can 

properly assess the impact of collection 

requirements on respondents. 

The proposed Policy contains a new 

information collection requirement, 

consisting of the information that 

should be submitted to demonstrate 

eligibility for a NAL as described further 

below. This has been deemed to be a 

collection of information for purposes of 

the PRA. Documentation prepared in 

support of this information collection 

request is available at 

www.regulations.gov. Requests for 

additional information and comments 

regarding this proposed collection of 

information should be submitted as 

described in the ADDRESSES section of 

this Notice. 

Title of Collection: Policy on NoAction Letters. 

OMB Control Number: 3170–XXXX. 

Type of Review: New Collection 

(Request for a new OMB control 

number). 

Affected Public: Private Sector 

(Certain businesses offering consumer 

financial products or services that meet 

the definition of ‘‘covered person’’ 

under section 1002(6) of the Dodd-Frank 

Act). 

Estimated Number of Respondents: 1– 

3. 

Estimated Total Annual Burden 

Hours: 50–300. 

III. Request for Comments 

Comments are invited with respect to 

any aspect of the proposed Policy and/ 

or the related information collection 

effected by the application process for 

no-action letters. Comments related to 

the proposed information collection will 

be summarized and/or included in the 

Bureau’s request for OMB approval. 

With respect to the collection, 

comments are invited on: (a) Whether 

the collection of information is 

necessary for the proper performance of 

the functions of the Bureau, including 

whether the information will have 

practical utility; (b) The accuracy of the 

Bureau’s estimate of the burden of the 

collection of information, including the 

validity of the methods and the 

assumptions used; (c) Ways to enhance 

the quality, utility, and clarity of the 

information to be collected; and (d) 

Ways to minimize the burden of the 

collection of information on 

respondents, including through the use 

of automated collection techniques or 

other forms of information technology. 

Comments submitted in response to this 

notice will be summarized and/or 

included in the request for Office of 

Management and Budget (OMB) 

approval. All comments will become a 

matter of public record. 

IV. Procedural Requirements 

The Bureau concludes that the 

proposed Policy constitutes an agency 

general statement of policy and/or a rule 

of agency organization, procedure, or 

practice exempt pursuant to 5 U.S.C. 

553(b). Notwithstanding this 

conclusion, the Bureau invites public 

comment on the proposed Policy. 

Because no notice of proposed 

rulemaking is required, the provisions 

of the Regulatory Flexibility Act (5 

U.S.C. Chapter 6) do not apply. 


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2 12 U.S.C. 5511(b)(5). As used in this Proposed 

Policy, the term ‘‘product(s)’’ means ‘‘product(s) 

and services’’ or ‘‘products or service(s),’’ as 

appropriate. 

3The Proposed Policy and any No-Action Letter 

is not intended to, nor should it be construed to: 

(1) Restrict or limit in any way the Bureau’s 

discretion in exercising its authorities, including 

the provision of no-action or similar relief other 

than pursuant to the Proposed Policy; (2) constitute 

an interpretation of law; or (3) create or confer upon 

any covered person (including one who is the 

subject of the Bureau supervisory, investigation, or 

enforcement activity) or consumer, any substantive 

or procedural rights or defenses that are enforceable 

in any manner. 

4The email subject line should begin ‘‘Request for 

No-Action Letter.’’ The Proposed Policy is one 

component of the Bureau’s Project Catalyst 

initiative, which invites organizations to bring 

innovation-related concerns to the Bureau’s 

attention at ProjectCatalyst@cfpb.gov. Innovators 

are advised to use the same Project Catalyst point 

of contact to initiate a preliminary discussion of a 

potential No-Action Letter. There are no formal 

submission requirements to request such a 

preliminary discussion. 

Policy On No-Action Letters 

Under Title X of the Dodd-Frank Wall 

Street Reform and Consumer Protection 

Act (Dodd-Frank Act), the Bureau’s 

objectives include ‘‘facilitating 

[consumer] access’’ to and ‘‘innovation’’ 

in markets for consumer financial 

products.2 The Bureau recognizes that, 

in certain circumstances, some may 

perceive that the current regulatory 

framework may hinder the development 

of innovative financial products that 

promise substantial consumer benefit 

because, for example, existing laws and 

rules did not contemplate such 

products. In such circumstances, it may 

be substantially uncertain whether or 

how specific provisions of certain 

statutes and regulations should be 

applied to such a product—and thus 

whether the federal agency tasked with 

administering those portions of a statute 

or regulation may bring an enforcement 

or supervisory action against the 

developer of the product for failure to 

comply with those laws. Such 

regulatory uncertainty may discourage 

innovators from entering a market, or 

make it difficult for them to develop 

suitable products or attract sufficient 

investment or other support. 

Federal agencies can reduce such 

regulatory uncertainty in a variety of 

ways. For example, an agency may 

clarify the application of its statutes and 

regulations to the type of product in 

question—by rulemaking or by the 

issuance of less formal guidance. 

Alternatively, an agency may provide 

some form of notification that it does 

not intend to recommend initiation of 

an enforcement or supervisory action 

against an entity based on the 

application of specific identified 

provisions of statutes or regulations to 

its offering of a particular product. This 

proposal is concerned with the latter 

means of reducing regulatory 

uncertainty in limited circumstances. 

Pursuant to its authorities under the 

Dodd-Frank Act, the Bureau is today 

releasing its Proposed Policy on NoAction Letters (Proposed Policy). Under 

the Proposed Policy, in the 

circumstances described above an entity 

may submit a request for a No-Action 

Letter from Bureau staff (staff). A NoAction Letter would be a statement that 

the staff has no present intention to 

recommend initiation of an enforcement 

or supervisory action against the 

requester with respect to particular 

aspects of its product, under specific 

identified provisions of statutes or 

regulations. Such a letter may be limited 

as to time, volume of transactions, or 

otherwise, and may be subject to 

potential renewal. Whether and how to 

provide a No-Action Letter or otherwise 

respond to such requests, including any 

limitations or conditions on acceptance, 

will be within the sole discretion of the 

staff. 

The Proposed Policy is intended to 

facilitate consumer access to innovative 

financial products that promise 

substantial benefit to consumers, taking 

into account other marketplace 

offerings, and also to enhance 

compliance with applicable federal 

consumer financial laws.3 By furnishing 

a dedicated mechanism through which 

substantial regulatory uncertainty can 

be reduced, the Proposed Policy is also 

intended to discourage the offering of 

innovative consumer-harmful financial 

products in such circumstances. In 

addition, because No-Action Letters 

often will be conditioned on specified 

consumer protection conditions 

designed to satisfy—or even exceed— 

applicable disclosure requirements and 

substantive protections, the Bureau 

expects the Proposed Policy, if adopted, 

to benefit consumers in further ways. 

The Bureau also expects the Proposed 

Policy to help further its consumer 

protection functions and objectives, 

including market monitoring and 

rulemaking, when a No-Action Letter is 

conditioned on a commitment by the 

requester to share data about the 

product with the Bureau, or to engage in 

other consultation that may help inform 

Bureau decisions regarding whether to 

take further action in connection with 

the financial product in question. 

The Proposed Policy has five sections: 

• Section A describes information 

that should be included in requests for 

a No-Action Letter. 

• Section B describes types of 

responses the staff may provide to 

requests for a No-Action Letter. 

• Section C lists factors the staff may 

consider in deciding whether to provide 

a No-Action Letter. 

• Section D describes the general 

content and limitations of No-Action 

Letters. 

• Section E describes disclosure of 

data received from entities whose 

requests for No-Action Letters are 

granted. 

A. Submitting Requests for No-Action 

Letters 

Requests for a No-Action Letter 

should be submitted in writing via 

email to ProjectCatalyst@cfpb.gov.4

Submitted requests may be withdrawn 

by the requester at any time. 

Requests should include the 

following: 

1. The name(s) of the entity or entities 

and individual(s) requesting the NoAction Letter. The staff will not accept 

requests for No-Action Letters that fail 

to identify the entity or entities and 

individuals providing the product. 

2. A description of the consumer 

financial product involved, including: 

a. How the product functions, and the 

terms on which the product will be 

offered; 

b. The roles and relationships of all 

parties to transactions involving the 

product; and 

c. The manner in which it is offered 

to and used by consumers, including 

any consumer disclosures. 

3. The timetable on which the product 

is expected to be offered. No-Action 

Letters are not intended for either wellestablished products or purely 

hypothetical products that are not close 

to being able to be offered. 

4. An explanation of how the product 

is likely to provide substantial benefit to 

consumers differently from the present 

marketplace, and suggested metrics for 

evaluating whether such benefits are 

realized. 

5. A candid explanation of potential 

consumer risks posed by the product— 

particularly as compared to other 

products available in the marketplace— 

and undertakings by the requester to 

address and minimize such risks. 

6. A showing of why the requested 

No-Action Letter is necessary and 

appropriate to remove substantial 

regulatory uncertainty hindering the 

development of the product, including: 

a. Identification of each of the specific 

provisions of the statutes and 

regulations regarding which a NoAction Letter is being requested, and a 

showing how each of these specific 

provisions of the statute(s) and 

regulation(s) should be applied to the 


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5Type (i) responses are further discussed in 

Section D below. 

6The Bureau may publish a denial on its Web site 

if it believes that doing so is in the public interest. 

7 If the staff decides to provide a Type (iii) 

response to the entity in such circumstances, the 

response will not be published on the Bureau’s Web 

site. 

8The decision whether to provide a No-Action 

Letter, and the terms on which it may be provided, 

are within the staff’s sole discretion. 

product is substantially uncertain, 

including analysis of the relevant legal 

authorities and policy considerations. 

b. A showing of why the product’s 

aspects in question should not be 

treated as subject to or precluded by the 

specific identified statute(s) and 

regulation(s), and/or how the proposed 

compliance of the product’s aspects in 

question with the specific identified 

statute(s) and regulation(s) is 

appropriate. 

c. A showing of the product’s 

compliance with other relevant federal 

and state regulatory requirements. 

d. A showing of why the substantial 

regulatory uncertainty that is the subject 

of the request cannot be effectively 

addressed through means other than the 

requested No-Action Letter, such as 

modification of the product. 

7. An affirmation that the facts and 

representations in the request are true 

and accurate. 

8. An undertaking by the requester to 

provide information requested by the 

staff in its evaluation of the request. 

9. A description of data that the 

requester possesses, and data it intends 

to develop, pertaining to the factual 

bases cited in support of the request and 

an undertaking, if the request is granted, 

to share appropriate data regarding the 

product with the Bureau, including data 

regarding the impact of the product on 

consumers. This description should also 

address the requester’s intentions 

regarding consultation with the Bureau 

in its plans for development of 

additional data. 

10. Undertakings that, if the request is 

granted, the requester will not represent 

that the Bureau or its staff has: (i) 

Licensed, authorized or endorsed the 

product, or its permissibility or 

appropriateness, in any way; (ii) 

determined, or provided an 

interpretation, that the product is or is 

not in compliance with legal or other 

requirements, or has been granted an 

exception, waiver, safe harbor, or 

comparable treatment; or (iii) granted 

No-Action Letter treatment with respect 

to any aspect of the requester’s offerings 

or any provision of law other than those 

expressly addressed in the No-Action 

Letter. 

11. An affirmation that, to the 

requester’s knowledge (except as 

specifically disclosed in the request), 

neither the requester nor any other party 

with substantial ties to transactions 

involving the product is the subject of 

an ongoing, imminent, or threatened 

governmental investigation, supervisory 

review, enforcement action, or private 

civil action respecting the product, or 

any related or similar product; and an 

undertaking promptly to notify the 

Bureau (unless the request for a NoAction Letter has been denied) of any 

such governmental investigation, 

supervisory review, enforcement action, 

or private civil action that is initiated or 

threatened. 

12. An affirmation that (except as 

specifically disclosed in the request) the 

principals of the requester have not 

been subject to license discipline, 

adverse supervisory action, or 

enforcement action with respect to any 

financial product, license, or transaction 

within the past ten years. 

13. A statement specifying whether 

the request is limited to a particular 

time period, to a particular volume of 

transactions, or to other limitations. 

14. A description of any particular 

consumer safeguards the requester will 

employ, although they may not be 

required by law, if a No-Action Letter is 

issued, including any mitigation of 

potential for or consequences of 

consumer injury. The description 

should specify the requester’s basis for 

asserting and considering that such 

safeguards are effective. The description 

should also address any future study the 

requester will undertake to further 

evaluate the effectiveness of such 

safeguards. 

15. If a request for confidential 

treatment is made, this request and the 

basis therefor should be included in a 

separate letter and submitted with the 

request for a No-Action Letter. 

B. Staff Response to Requests for NoAction Letters 

The decision whether to respond to a 

request for a No-Action Letter, and the 

nature of any response, is within the 

staff’s sole discretion. Depending on the 

circumstances, the staff may: (i) Grant 

the request (which grant may be partial, 

or may be subject to limitations or 

conditions); (ii) deny the request; (iii) 

specifically decline to either grant or 

deny the request, with an explanation; 

or (iv) specifically decline to either 

grant or deny the request, without 

explanation. The staff may 

communicate with the requester before 

making any decision regarding whether 

and how to respond to the request to 

seek clarification or for other purposes. 

The staff may permit requests to be 

modified in the course of such 

communications. No-Action Letters are 

subject to immediate modification and/ 

or revocation upon notice. 

Type (i) responses, and a version or 

summary of the request, will be 

published on the Bureau’s Web site.5

Type (ii) responses will be provided to 

the requester but generally will not be 

published on the Bureau’s Web site.6

Type (iii) and (iv) responses may be 

published on the Bureau’s Web site, 

particularly if the staff believes that the 

information will be in the public 

interest. 

Non-exclusive examples of 

circumstances under which the staff 

presumptively will not answer the 

request or will likely provide, at most, 

a response of type (iii) or (iv) include: 

1. The requester or its principals are 

the subject of ongoing governmental law 

enforcement investigation, supervisory 

review, or enforcement action 

respecting the product or a related or 

similar product.7

2. The request concerns an area in 

which the Bureau is engaged in ongoing 

or anticipated rulemaking, supervisory, 

enforcement, or other initiatives. 

3. The request concerns a legal or 

product environment which the staff 

considers to be inappropriate for noaction treatment. At the present time, 

for example, the staff does not anticipate 

no-action treatment of UDAAP matters. 

4. The staff has determined that the 

request does not warrant investment of 

the Bureau resources that are likely 

necessary to address the request 

adequately. 

No-Action Letters will not be 

routinely available. The Bureau 

anticipates that No-Action Letters will 

be provided only rarely and on the basis 

of exceptional circumstances and a 

thorough and persuasive demonstration 

of the appropriateness of such 

treatment. Requesters do not have a 

legal entitlement to no-action treatment 

of regulatory uncertainties, and Bureau 

resources available for consideration of 

No-Action Letter requests are limited in 

light of other Bureau priorities. 

Requesters may wish to include in their 

submissions any particular reasons why 

their request should be considered by 

the Bureau to be a matter of special 

importance. 

C. Staff Assessment of Requests for NoAction Letters 

In deciding whether to provide a NoAction Letter,8 the staff will consider a 

variety of factors, including: 

1. The extent to which the requester’s 

product structure, terms and conditions, 

and disclosures to and agreements with 


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9This factor includes the extent to which the 

requester has plans in place for addressing 

unanticipated consumer harms caused by the 

product and the extent to which the entity 

possesses the resources to compensate injured 

consumers. 

10 78 FR 64389 (Oct. 29, 2013). 

11See 12 CFR part 1070. 

12See 12 CFR 1070.14. 

consumers enable consumers to 

meaningfully understand and appreciate 

the terms, characteristics, costs, 

benefits, and risks associated with the 

product, and to act effectively to protect 

themselves from unnecessary cost and 

risk. 

2. The extent to which evidence, 

including the requester’s own testing, 

indicates that the product’s aspects in 

question may provide substantial 

benefits to consumers. 

3. The extent to which the asserted 

benefits to consumers are available in 

the marketplace from other products. 

4. The extent to which the requester 

controls for and effectively addresses 

and mitigates risks to consumers.9

5. The extent to which granting the 

request is necessary in order to reduce 

regulatory uncertainty for the requester 

with respect to the requester’s product. 

6. The extent to which the regulatory 

uncertainty identified by the requester 

may be better addressed through other 

regulatory means, such as Bureau 

rulemaking, other Bureau guidance, or 

provision of a waiver under the 

Bureau’s Policy to Encourage Trial 

Disclosure Programs.10

7. Whether the entity is demonstrably 

in compliance with other relevant 

federal and state regulatory 

requirements. 

8. The extent to which the request is 

sufficiently limited in time, volume of 

transactions, or otherwise, to allow the 

Bureau to learn about the product and 

the aspects in question while 

minimizing any consumer risk. 

9. The extent to which any data that 

the entity has provided and agrees to 

provide to the Bureau regarding the 

operation of the product’s aspects in 

question will be expected to further 

consumer protection. 

10. The extent to which public 

disclosure of relevant data may be 

permitted. 

D. Staff Provision of No-Action Letters 

When the staff decides to provide a 

No-Action Letter, it will publish the 

letter, along with the request, on its Web 

site. The No-Action Letter will include 

the following: 

1. A statement that, subject to the 

conditions and limitations set forth, the 

staff has no present intention to 

recommend initiation of an enforcement 

or supervisory action against the 

requester in respect to the particular 

aspects of its product, and under 

specific identified provisions and 

applications of statutes or regulations 

that are the subject of the No-Action 

Letter. The statement that the staff has 

no present intention to recommend 

initiation of an enforcement or 

supervisory action does not mean that 

the Bureau will not conduct supervisory 

activities or engage in enforcement 

investigation to evaluate the requester’s 

compliance with the terms of the NoAction Letter or to evaluate other 

matters. 

2. A statement that the no-action 

treatment is limited to the requester’s 

offering of the product’s aspects in 

question in the manner described, and 

that it does not pertain to (i) the 

requester for offering the product in a 

different manner; (ii) the requester for 

offering different products, or with 

respect to other provisions or 

applications of these or other statutes 

and regulations, or with respect to other 

aspects of the product; or (iii) any other 

person. 

3. A statement that the No-Action 

Letter is based on the facts and factual 

representations made in the request, and 

is contingent on the correctness of such 

facts and factual representations. 

4. A statement (a) disclaiming any 

intention by the Bureau or its staff to 

have reached a determination about, or 

to provide an interpretation of, or to 

grant any exception, waiver, safe harbor, 

or similar treatment respecting the 

statutes and rules identified in the 

request, or their application to the 

product’s aspects in question, or 

otherwise to make an official expression 

of the Bureau’s views, and that any 

explanatory discussion should not be 

interpreted as such an interpretation, 

waiver, safe harbor, or the like, that is 

binding on the Bureau, and (b) that the 

staff are not necessarily in agreement 

with any legal or policy analysis, any 

interpretation of data, or any other 

matter, set forth in the request. 

5. A description of any conditions or 

limitation attending the staff’s 

recommendation, such as the requester’s 

commitment to provide additional 

safeguards to consumers, or to share 

certain types of data with the Bureau, as 

well as any limitations as to time period 

or quantity of transactions. 

6. A statement that the No-Action 

Letter is subject to modification or 

revocation at any time at the discretion 

of the staff for any reason, including 

that: the facts and representations in the 

request appear to be materially 

inaccurate or uncertain; the requester 

fails to satisfy conditions or violates 

limitations specified in the No-Action 

Letter; the product or any of its material 

features, terms, or conditions, is altered; 

or the staff determines that such 

modification or revocation is 

appropriate to protect consumers or is 

otherwise in the public interest. 

Revocation or modification may be 

immediate upon notice. To the extent 

that the facts and representations in the 

request are materially inaccurate, or the 

requester fails to satisfy conditions or 

violates limitations specified in the NoAction letter, and in other similar 

circumstances, the No-Action Letter is 

by its own terms inapplicable (even 

without modification or revocation) and 

the staff may recommend initiating a 

retrospective enforcement or 

supervisory action if appropriate. 

7. A statement that the No-Action 

Letter is not issued by or on behalf of 

any other government agency or any 

other person and, so far as the Bureau 

is concerned, no other government 

agency or person, and no court, has any 

obligation to honor or defer to it in any 

way. 

8. A statement of any expiration date, 

or volume limitation, applicable to the 

No-Action letter (and whether or not it 

may be sought to be renewed). 

9. A statement that the No-Action 

letter becomes inapplicable upon failure 

to adhere to the affirmations or 

undertakings made in the request or 

stated as conditions of the issuance of 

the letter. 

E. Bureau Disclosure of Entity Data 

The Bureau’s disclosure of the request 

and any data received from the 

requester in connection with a request 

for a No-Action Letter is governed by 

the Bureau’s rule regarding Disclosure 

of Records and Information.11 For 

example, the rule generally requires the 

Bureau to make available records 

requested by the public unless they are 

subject to a FOIA exemption or 

exclusion.12 To the extent the Bureau 

affirmatively wishes to disclose such 

data, the terms of such disclosure will 

be consistent with applicable law and 

the Bureau’s own rules and may be 

specified in a separate agreement with 

the requester. Consistent with 

applicable law and its own rules, the 

Bureau will not seek to disclose data 

that would conflict with consumers’ 

privacy interests. 

Dated: October 9, 2014. 

Richard Cordray, 

Director, Bureau of Consumer Financial 

Protection. 

[FR Doc. 2014–24645 Filed 10–15–14; 8:45 am] 

BILLING CODE 4810–AM–P 


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