This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

45574 

Vol. 83, No. 175 

Monday, September 10, 2018 

1 12 U.S.C. 5532(e). 

2 12 U.S.C. 5511(a). 

3 12 U.S.C. 5511(b)(1), (b)(3), (b)(5). 

4 12 U.S.C. 5532(e)(1). 

5 12 U.S.C. 5532(e)(2). 

6 12 U.S.C. 5532(e)(1), (2). 

7 12 U.S.C. 5532(e)(3). 

BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

12 CFR Chapter X 

[Docket No. CFPB–2018–0023] 

Policy to Encourage Trial Disclosure 

Programs 

AGENCY: Bureau of Consumer Financial 

Protection. 

ACTION: Notice of proposed policy 

guidance; request for comment. 

SUMMARY: The Bureau of Consumer 

Financial Protection (Bureau) invites the 

public to take this opportunity to 

comment on its proposal to create a 

Disclosure Sandbox through its revised 

Policy to Encourage Trial Disclosure 

Programs (Policy or TDP Policy), which 

is intended to carry out the Bureau’s 

authority under Section 1032(e) of the 

Dodd-Frank Wall Street Reform and 

Consumer Protection Act of 2010 (DoddFrank Act). 

DATES: Written comments are 

encouraged and must be received on or 

before October 10, 2018. 

ADDRESSES: You may submit comments, 

identified by Docket No. [CFPB–2018– 

0023], by any of the following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Email: FederalRegisterComments@

cfpb.gov. Include Docket No. [CFPB– 

2018–0023] in the subject line of the 

email. 

• Mail/Hand Delivery/Courier: 

Comment Intake, Bureau of Consumer 

Financial Protection, 1700 G Street NW, 

Washington, DC 20552. 

Instructions: All submissions should 

include the agency name and docket 

number. Because paper mail in the 

Washington, DC area and at the Bureau 

is subject to delay, commenters are 

encouraged to submit comments 

electronically. In general, all comments 

received will be posted without change 

to http://www.regulations.gov. In 

addition, comments will be available for 

public inspection and copying at 1700 

G Street NW, Washington, DC 20552, on 

official business days between the hours 

of 10 a.m. and 5 p.m. Eastern Time. You 

can make an appointment to inspect the 

documents by telephoning (202) 435– 

7275. All comments, including 

attachments and other supporting 

materials, will become part of the public 

record and subject to public disclosure. 

Sensitive personal information, such as 

account numbers or Social Security 

numbers, should not be included. 

Comments generally will not be edited 

to remove any identifying or contact 

information. 

FOR FURTHER INFORMATION CONTACT: For 

additional information about the revised 

Policy, contact Paul Watkins, Assistant 

Director, Office of Innovation at 

officeofinnovation@cfpb.gov or 202– 

435–7000. If you require this document 

in an alternative electronic format, 

please contact CFPB_Accessibility@

cfpb.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

In subsection 1032(e) of the DoddFrank Act, Congress gave the Bureau 

authority to provide certain legal 

protections to companies to conduct 

trial disclosure programs.1 This 

authority furthers the Bureau’s statutory 

purpose, stated in subsection 1021(a) of 

the Act, to ensure that all consumers 

have access to markets for consumer 

financial products and services and that 

markets for consumer financial products 

and services are fair, transparent, and 

competitive.2 Furthermore, this 

authority advances the Bureau’s 

statutory objectives in subsection 

1021(b) of the Act to ensure consumers 

are provided with timely and 

understandable information to make 

responsible decisions about financial 

transactions; outdated, unnecessary, or 

unduly burdensome regulations are 

regularly identified and addressed in 

order to reduce unwarranted regulatory 

burdens; and markets for consumer 

financial products and services operate 

transparently and efficiently to facilitate 

access and innovation.3

More specifically, under section 

1032(e), the Bureau may permit 

companies to conduct trial disclosure 

programs, limited in time and scope, to 

improve upon existing disclosures.4

Such permission may include providing 

a legal safe harbor; i.e., the Bureau may 

deem a company conducting such a 

program to be in compliance with, or 

exempt from, a requirement of a rule or 

enumerated consumer law.5 Such trial 

disclosure programs must be subject to 

standards and procedures that are 

designed to encourage companies to 

conduct such programs.6 Similarly, 

although Bureau rules must provide for 

public disclosure of such programs, 

such public disclosure may be limited 

to the extent necessary to encourage 

covered persons to conduct effective 

trials.7

Pursuant to the purposes, objectives, 

and authority listed above, the Bureau 

proposed its Policy to Encourage Trial 

Disclosure Programs in December 2012, 

and finalized the Policy in September 

2013. However, the Policy failed to 

effectively encourage trial disclosure 

programs: The Bureau did not permit a 

single such program in the nearly five 

years since the Policy was issued. 

II. Summary of the Proposed Revised 

Policy 

In line with the above authority, the 

Bureau is proposing to revise the Policy 

in order to more effectively encourage 

companies to conduct trial disclosure 

programs. The proposed revisions have 

the following goals: (1) Reducing the 

application burden and review time 

frame; (2) increasing guidance regarding 

the testing time frame; (3) specifying 

procedures for extensions of successful 

trial disclosure programs; and (4) 

providing for coordination with existing 

or future programs offered by other 

regulators designed to facilitate 

innovation. 

More specifically, the Bureau is 

proposing to streamline the application 

process by eliminating several elements 

it determined were redundant or 

otherwise unnecessary. The list of 

factors the Bureau intends to consider 

when reviewing applications has been 

substantially reduced for similar 

reasons. As a result, the Bureau’s 

proposed review will now focus on the 

quality and persuasiveness of the 

application, especially the extent to 

which the trial disclosures are likely to 


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8 12 U.S.C. 5532(e)(2). For convenience, this 

statutory authority to deem companies in 

compliance with or to exempt them from disclosure 

requirements—in each case for a limited period of 

time—is hereinafter referred to as the authority to 

issue waivers for permitted programs, irrespective 

of whether this authority is effectuated through 

granting a waiver directly to a testing company 

under Sections A, B and C or indirectly through an 

agreement with another regulator under Section E. 

9The Bureau has also made a number of technical 

changes to the Policy to accommodate the abovedescribed substantive revisions and to increase 

clarity. 

10 5 U.S.C. 603(a), 604(a). 

be an improvement over existing 

disclosures, and the extent to which the 

testing program mitigates risks to 

consumers. Accordingly, under the 

proposed Policy, the Bureau intends to 

grant or deny a formal, complete 

application for a trial disclosure waiver 

within 60 days of submission. In 

addition, the proposed Policy reiterates 

that the Bureau may grant waivers for 

disclosures that improve upon existing 

requirements based upon costeffectiveness, delivery mechanism, or 

consumer understanding. 

As under the current Policy, during 

the testing period, the Bureau proposes 

to deem a testing company’s trial 

disclosure, to the extent that it is used 

in accordance with the terms and 

conditions permitted by the Bureau, to 

be in compliance with, or exempted 

from, applicable Federal disclosure 

requirements.8 To facilitate the Bureau’s 

awareness of the effects of trial 

disclosures on consumers, the proposed 

Policy clarifies that the Bureau intends 

to require recipients of such a waiver to 

notify the Bureau of material changes in 

complaint patterns or other information 

that should be investigated by the 

Bureau to determine if the trial 

disclosures may be causing a material, 

adverse, impact on consumer 

understanding. 

The proposed Policy informs 

potential applicants of the Bureau’s 

expectation that a two-year testing 

period will be appropriate in most 

cases. It also adds a new section on the 

important subject of extensions of 

waivers for successful trial disclosure 

programs. The new section specifies the 

procedures for requesting such an 

extension and clarifies the Bureau’s 

intention to grant such requests where 

there is evidence that the trial 

disclosures have tested successfully. To 

the extent that testers are able to show 

that trial disclosures succeed in 

improving upon existing requirements, 

the Bureau will endeavor to amend 

disclosure rules accordingly and to 

permit the use of validated trial 

disclosures until such amendment is 

effective. 

The proposed Policy also adds a new 

section regarding Bureau coordination 

with other regulators that offer similar 

programs designed to facilitate 

consumer-beneficial innovation. This 

new section provides that the Bureau 

intends to coordinate operation of the 

TDP Policy—the Bureau’s Disclosure 

Sandbox—with similar programs offered 

by State, Federal, or international 

regulators. It provides that the Bureau is 

interested in entering into agreements 

with other regulators where testing 

companies could be permitted to 

conduct a trial program pursuant to the 

Bureau’s agreement with the regulator 

on specified procedures, rather than 

through the application and approval 

process described in Sections A and B. 

Finally, the proposed Policy clarifies 

that applications may be submitted by a 

group, such as a trade association, on 

behalf of its members, and may propose 

a scaled or iterative approach to 

testing.9

The Bureau believes significant 

opportunities exist to enhance 

consumer protection by facilitating 

innovation in financial products and 

services and enabling companies to 

research informative, cost-effective 

disclosures. The Bureau also recognizes 

that in-market testing, involving 

companies and consumers in real world 

situations, may offer particularly 

valuable information for improving 

disclosure rules and model forms. 

The Bureau invites public comment 

on any aspect of the revised Policy. The 

Bureau will publish a final revised 

Policy after considering comments 

received. The Bureau will not accept 

formal applications until the comment 

period has closed and the Bureau has 

adopted a final revised Policy. However, 

the Bureau welcomes informal inquires 

during the comment period. 

III. Regulatory Requirements 

The Bureau has concluded that, if 

finalized, this Policy Guidance would 

constitute an agency general statement 

of policy and/or a rule of agency 

organization, procedure, or practice 

exempt from the notice and comment 

rulemaking requirements under the 

Administrative Procedure Act, 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 Regulatory 

Flexibility Act does not require an 

initial or final regulatory flexibility 

analysis.10

IV. 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 the Office of Management and 

Budget (OMB) approval for information 

collection requirements prior to 

implementation. According to the PRA, 

the Bureau may not conduct or sponsor, 

and, notwithstanding any other 

provision of law, a person is not 

required to respond to an information 

collection unless the information 

collection displays currently a valid 

control number assigned by OMB. The 

information requested in Section A of 

this Policy has been previously 

approved by OMB and assigned OMB 

control number 3170–0039. It expires on 

07/31/2019. You may access 

documentation for this OMB number on 

www.reginfo.gov by selecting 

‘‘Information Collection Review’’ from 

the main menu, clicking on ‘‘Search,’’ 

and then entering the OMB control 

number. 

The time required to complete this 

information collection is estimated to 

average between 2 and 10 hours per 

response, including the time for 

reviewing any instructions, searching 

existing data sources, gathering and 

maintaining the data needed, and 

completing and reviewing the collection 

of information. The obligation to 

respond to this collection of information 

is required to obtain a benefit to the 

extent that the information is to 

establish eligibility for a temporary 

waiver, as described in this Policy. 

The Bureau has determined that the 

revisions to this Policy do not introduce 

any new or substantively or materially 

revised collections of information 

beyond what has been previously 

approved by OMB. The Bureau has an 

interest in the public’s opinions 

regarding this determination as well as 

the public’s comments regarding the 

estimated response time, suggestions for 

improving the usefulness of the 

information, or suggestions for reducing 

the burden to respond to this 

information collection. Comments 

regarding PRA aspects of this revised 

Policy may be submitted to the Bureau 

as outlined above in the ADDRESSES

section of this document. 

IV. Revised Policy To Encourage Trial 

Disclosure Programs 

The text of the proposed Policy is as 

follows. 

Consumers need timely and 

understandable information to make the 

financial decisions that they believe are 

best for themselves and their families. 

Much Federal consumer protection law, 

therefore, rests on the assumption that 

accurate and effective disclosures will 

help Americans understand the costs, 


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11 12 U.S.C. 5532(a)–(d). For purposes of the TDP 

Policy, disclosures encompass all notifications, 

including notifications of any adverse action. 

12 12 U.S.C. 5532(e). 

13 12 U.S.C. 5511(a). 

14 12 U.S.C. 5511(b)(1), (b)(3), (b)(5). 

15 12 U.S.C. 5532(e)(1). 

16 12 U.S.C. 5532(e)(2). 

17 12 U.S.C. 5532(e)(1), (2). 

18 12 U.S.C. 5532(e)(3). 

19For convenience, this statutory authority to 

deem companies in compliance with or to exempt 

them from disclosure requirements—in each case 

for a limited period of time—is hereinafter referred 

to as the authority to issue waivers for permitted 

programs, irrespective of whether this authority is 

effectuated through granting a waiver to a testing 

company under Sections A, B and C or pursuant to 

an agreement with another regulator under Section 

E. 

20 12 U.S.C. 5532(e). As specified in section C of 

the Policy, if the Bureau permits a trial disclosure 

program, the terms of its permission will specify 

certain legal rights granted to the recipient or 

recipients of the waiver with respect to that 

program. Those rights, however, are based on the 

terms of permission, and not on the Policy. The 

Policy 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; (2) constitute 

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

any covered person (including one who is the 

subject of Bureau supervisory, investigation, or 

enforcement activity) or consumer, any substantive 

or procedural rights or defenses that are enforceable 

in any manner. Nor should the Policy be viewed as 

substituting for the normal process of rulemaking. 

In the event that information learned from trial 

disclosure programs triggers or otherwise informs 

follow-on rulemaking, the Bureau would follow the 

standard rulemaking process, which affords the 

public the opportunity of submitting comments on 

a proposed regulation. 

21The Bureau intends to consider applications 

that involve testing by more than one company. A 

trade association or other group may apply on 

behalf of its members to test a certain disclosure. 

If a disclosure is permitted for a group, each testing 

company must notify the Bureau that the company 

will utilize the disclosure under the terms 

permitted for the group. Either the group must 

commit to providing testing data to the Bureau for 

all permitted companies broken down by individual 

company or each individual company must commit 

to providing data to the Bureau. 

22An application could include the elimination 

of disclosure requirements, modifications to an 

existing model form or other disclosures, changed 

delivery mechanisms, or replacement of a model 

form or existing disclosure requirements with new 

disclosures or forms. Applications should include 

a copy of the trial disclosures to be tested, a 

description of what they would replace, and a clear 

statement of how they would be provided to 

consumers. When applications consist of revised 

disclosure content—as opposed to revisions to 

delivery mechanisms—that content should be in 

plain language, reflect a clear format and design, 

and be succinct. If an application is for iterative 

testing, it should specify the initial disclosure and 

a description of the range or type of modifications 

intended for iterative testing. 

benefits, and risks of consumer financial 

products and services. 

In Section 1032 of the Dodd-Frank 

Wall Street Reform and Consumer 

Protection Act (Dodd-Frank Act), 

Congress gave the Bureau of Consumer 

Financial Protection (Bureau) authority 

to prescribe rules to ensure that 

consumers receive such disclosures, and 

to include in such rules model forms to 

facilitate compliance.11 Furthermore, in 

subsection 1032(e) of the Dodd-Frank 

Act, Congress gave the Bureau authority 

to provide certain legal protections to 

companies to conduct trial disclosure 

programs.12 This authority furthers the 

Bureau’s statutory purpose, stated in 

subsection 1021(a) of the Act, to ensure 

that all consumers have access to 

markets for consumer financial products 

and services and that markets for 

consumer financial products and 

services are fair, transparent and 

competitive.13 Furthermore, this 

authority advances the Bureau’s 

statutory objectives in subsection 

1021(b) of the Act to ensure consumers 

are provided with timely and 

understandable information to make 

responsible decisions about financial 

transactions; outdated, unnecessary, or 

unduly burdensome regulations are 

regularly identified and addressed in 

order to reduce unwarranted regulatory 

burdens; and markets for consumer 

financial products and services operate 

transparently and efficiently to facilitate 

access and innovation.14

More specifically, under section 

1032(e), the Bureau may permit 

companies to conduct trial disclosure 

programs, limited in time and scope, to 

improve upon existing disclosures.15

Such permission may include providing 

a legal safe harbor; i.e., the Bureau may 

deem a company conducting such a 

program to be in compliance with, or 

exempt from, a requirement of a rule or 

enumerated consumer law.16 Such trial 

disclosure programs must be subject to 

standards and procedures that are 

designed to encourage companies to 

conduct such programs.17 Similarly, 

although Bureau rules must provide for 

public disclosure of such programs, 

such public disclosure may be limited 

to the extent necessary to encourage 

covered persons to conduct effective 

trials.18

For permitted trial disclosure 

programs, therefore, the Bureau will, for 

a defined period, deem a participating 

company to be in compliance with, or 

exempt from, identified Federal 

disclosure requirements.19 As a result of 

this determination by the Bureau, no 

basis exists under those provisions for a 

private suit based on the company’s use 

of the trial disclosure. The same is true 

with respect to other Federal and State 

regulators even if they have enforcement 

or supervisory authority as to the 

enumerated consumer laws for which 

the Bureau has rulemaking authority. 

There can be no predicate for an 

enforcement or supervisory action by 

such a regulator that is based on a 

statutory or regulatory provisions 

waived by the Bureau. 

The Bureau also encourages 

applicants to confer with other Federal 

and State government officials where a 

proposed trial disclosure implicates 

requirements administered by such 

authorities. Applications that involve 

the Bureau coordinating with other such 

officials should identify the other 

authorities applicants have contacted 

with respect to the proposal. 

The Bureau believes that there may be 

significant opportunities to enhance 

consumer protection by facilitating 

innovation in financial products and 

services through enabling responsible 

companies to research informative, costeffective disclosures in test programs. 

The Bureau also recognizes that inmarket testing, involving companies and 

consumers in real world situations, may 

offer particularly valuable information 

with which to improve disclosure rules 

and model forms. 

The Policy implements the statutory 

requirement to issue standards and 

procedures for trial disclosure programs 

and is designed to encourage financial 

services companies to innovate by 

proposing and conducting such 

programs, consistent with the 

protections for consumers described in 

the Policy.20

The Policy consists of six sections: 

• Section A describes information 

that should be included in an 

application for a trial disclosure 

program waiver; 

• Section B lists factors the Bureau 

may consider in deciding whether to 

grant an application for a waiver and 

specifies the expected time frame for the 

Bureau’s review of formal, complete 

applications; 

• Section C describes the Bureau’s 

procedures for issuing waivers; 

• Section D describes the Bureau’s 

procedures for issuing extensions of 

waivers; 

• Section E describes how the Bureau 

will coordinate with other regulators 

with respect to the Policy; and 

• Section F describes disclosure of 

information relating to permitted trial 

disclosure program. 

A. Submitting Applications for Trial 

Disclosure Program Waivers 

Applications for a waiver should: 

1. Identify the testing company or 

group of companies; 21

2. Describe the new disclosures or 

delivery mechanisms that are to be 

tested; 22 and how these changes are 

expected to improve upon existing 

disclosures or delivery mechanisms 


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23The Bureau expects that a two-year testing 

period will be appropriate in most cases. 

24 If the applicant wishes the Bureau to 

coordinate with other regulators, the applicant 

should identify any governmental authorities that 

have allowed or been contacted about the trial 

disclosure in question. 

25Applicants should describe the scope of the 

requested waiver with as much specificity as 

practicable, in part to enable the Bureau to respond 

expeditiously to the application. The Bureau 

recognizes that in some cases it may be difficult to 

determine precisely which regulatory requirements 

would apply, in the normal course, to a proposed 

test disclosure. In other cases, the applicant may 

lack the legal resources to make a fully precise 

determination. In such circumstances, the applicant 

should provide the maximum specification 

practicable under the circumstances and explain 

the limits on further specification. 

26Under subsection 1032(e)(2), the Bureau has 

authority to waive a requirement of a rule or an 

enumerated consumer law, as that term is defined 

in the Dodd-Frank Act. 12 U.S.C. 5481(12). As used 

in subsection 1032(e)(2), the term ‘‘rule’’ includes: 

(i) Rules implementing an enumerated consumer 

law; and (ii) rules implementing the Consumer 

Financial Protection Act of 2010, including rules 

promulgated by the Bureau under its authority to 

prevent unfair, abusive, or deceptive acts or 

practices, or to enable full, accurate and effective 

disclosure. 

27The email subject line should begin ‘‘Trial 

Disclosure Program.’’ 

28The decision whether to permit a trial 

disclosure program will be within the Bureau’s sole 

discretion. The Bureau will review reasonable 

requests to reconsider its denial of a trial disclosure 

program. 

29 If the Bureau determines not to permit a 

proposed trial disclosure program, it will inform the 

company of its determination. 

30Before issuing a revocation, the Bureau will 

notify the affected company (or companies) of the 

grounds for revocation, and permit an opportunity 

to respond. If the Bureau nonetheless determines 

that the company failed to follow the terms of the 

waiver, it may offer an opportunity to correct any 

such failure before revoking the waiver. If the 

Bureau revokes or partially revokes a waiver for 

failure to follow the waiver’s terms, it will do so 

in writing and it will specify the reason or reasons 

for its action. 

31The waiver may be as limited as a specific 

provision or as broad as all requirements applicable 

to a particular disclosure, including specifically 

identified provisions. 

32The procedures specified in section C may be 

modified pursuant to coordination efforts with 

other regulators. See section E below. 

33Assuming the two-year testing period the 

Bureau expects to be appropriate in most cases, the 

Bureau believes the testing company(s) would have 

sufficient time to gather evidence supportive of an 

extension request. 

with respect to cost effectiveness, 

increased consumer understanding, or 

otherwise; 

3. Provide a reasonable basis for 

expecting and measuring these 

improvements, such as comparisons 

with existing costs, or consumer 

payment/response rates for the company 

or the relevant industry; 

4. Identify the requested duration of 

the test,23 and the size, location, and 

nature of the consumer population 

involved in the test, and explain why 

those parameters were selected, 

including whether the population will 

be scaled or modified over the duration 

of the test; 24

5. Identify any risks to consumers that 

may be associated with the proposed 

program, describe how the program 

intends to mitigate such risks, and 

explain the procedures that will be used 

to assess for potential risks to 

consumers during the course of the test; 

6. Identify the statutory and 

regulatory requirements 25 to be 

temporarily waived in connection with 

the trial disclosure program; 26

7. Contain a commitment to and 

schedule for sharing test result data 

with the Bureau after the conclusion of 

the program, as well as indicating any 

test result data to be shared during the 

program; and 

8. Explain how the testing company 

or companies will address disclosure 

requirements for the test population at 

the conclusion of the test period. 

All applications should be submitted 

via email to: officeofinnovation@

cfpb.gov. Submitted applications may be 

withdrawn at any time. Potential 

applicants are encouraged to contact the 

Office of Innovation for informal 

preliminary discussion of a 

contemplated proposal prior to 

submitting a formal, complete 

application.27

B. Bureau Assessment of Applications 

for Trial Disclosure Program Waivers 

To decide whether to permit a 

proposed trial disclosure program,28 the 

Bureau will consider the quality and 

persuasiveness of the application, with 

a particular emphasis on items covered 

in subsections A.2 and A.5. 

The Bureau intends to grant or deny 

formal, complete applications within 60 

days of submission. 

C. Waiver Procedures for Permitted Trial 

Disclosure Programs 

When the Bureau grants a waiver, it 

intends to provide the company or 

companies that receive the waiver with 

the specific terms and conditions of its 

permission.29 If a company does not 

follow the terms and conditions of the 

waiver, or if the Bureau determines that 

the disclosure is causing a material, 

adverse, impact on consumer 

understanding, the Bureau may revoke 

the waiver in whole or in part.30 To 

facilitate such a determination, the 

Bureau intends to require companies to 

notify the Bureau of material changes in 

customer service inquiries, complaint 

patterns, default rates, or other 

information that should be investigated 

by the Bureau to determine if the trial 

disclosures may be causing a material, 

adverse, impact on consumer 

understanding. 

The Bureau expects that waiver terms 

and conditions will be specified in 

writing in an integrated document 

entitled ‘‘1032(e) Trial Disclosure 

Waiver: Terms and Conditions.’’ The 

document will be signed by the 

Assistant Director of the Office of 

Innovation or other member of the 

Office of Innovation to whom the 

Director of the Bureau delegates such 

signature authority. 

In addition, the Bureau expects the 

document will: 

1. Identify the company or group of 

companies that are receiving a waiver; 

2. Specify the new disclosure(s) or 

delivery methods to be used by the 

company or companies under the terms 

of the waiver; 

3. Specify the scope of the waiver 

provided by the Bureau during the test 

period for the testing company or 

companies; 31

4. Specify the duration of the waiver; 

5. Describe the test population(s); 

6. State that, in the exercise of its 

discretion, the Bureau will not make 

supervisory findings or bring a 

supervisory or enforcement action 

against the company or companies 

under its authority to prevent unfair, 

abusive, or deceptive acts or practices 

predicated upon its or their use of the 

trial disclosures during the waiver 

period, provided the company engages 

in good faith, substantial, compliance 

with the terms of the waiver; and 

7. Specify any other conditions on the 

effectiveness of the waiver, such as the 

terms of testing, data sharing, 

certification of compliance with the 

terms of the waiver, and/or public 

disclosure.32

D. Procedures for Extension of Trial 

Disclosure Program Waivers 

Waiver recipients may reapply by 

resubmitting the entirety of the 

information required under Section A. 

As an alternative, waiver recipients may 

request an extension for a specified 

period of time based upon the quality 

and persuasiveness of the test result 

data required to be provided to the 

Bureau under subsection A.7. The 

Bureau expects to place particular 

weight upon whether the data supports 

the objectives identified in the 

application under subsections A.2 and 

A.5 to improve upon existing 

disclosures, without causing a material, 

adverse, impact on consumer 

understanding. Such requests for an 

extension should include the duration 

of the requested extension and should 

be submitted no later than 150-days 

prior to the expiration of the waiver.33


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34Rule amendments that follow successful trial 

disclosure tests could continue to permit all 

existing disclosure practices—allowing an 

additional and alternative method of compliance, 

rather than replacing existing requirements with 

new ones. If the period of an extension were tied 

to the Bureau’s consideration of amending relevant 

disclosure requirements and the Bureau announced 

it was discontinuing its plans to amend the 

disclosure rules in question, such a waiver would 

be revised to be for a period of a fixed length or 

revoked after reasonable notice to the testing 

company(s). 

35 12 U.S.C. 5495. 

36 12 U.S.C. 5552(c). 

37The concept of a regulatory sandbox is 

relatively new and does not have a precise, 

generally accepted definition. The term is used in 

this Policy to refer to a regulatory structure where 

a participant obtains limited or temporary access to 

a market in exchange for reduced regulatory barriers 

to entry or reduced regulatory uncertainty. 

38See note 26. 

39The Bureau will at minimum publish the 

names of companies conducting trial disclosure 

programs pursuant to Section E, but reserves the 

discretion to negotiate any additional disclosure 

terms with the corresponding regulator. 

40See 12 CFR 1070 et seq. 

Upon the presentation of persuasive 

test result data, the Bureau anticipates 

permitting such extension requests for a 

period at least as long as the period of 

the original waiver. The Bureau 

anticipates permitting longer extensions 

where the Bureau is considering 

amending disclosure requirements in a 

manner consistent with the trial 

disclosures in question.34 During the 

time period pending a rule amendment, 

the Bureau intends to consider means of 

making the improved disclosure 

available to other covered entities. 

E. Regulatory Coordination 

Subsection 1015 of the Dodd-Frank 

Act instructs the Bureau to coordinate 

with . . . Federal agencies and State 

regulators, as appropriate, to promote 

consistent regulatory treatment of 

consumer financial and investment 

products and services.35 Similarly, 

subsection 1042(c) of the Act instructs 

the Bureau to provide guidance in order 

to further coordinate actions with the 

State attorneys general and other 

regulators.36 The Bureau’s direction to 

coordinate includes coordinating 

circumstances where States have chosen 

to limit their enforcement or other 

regulatory authority. One method of 

limiting such authority is through a 

State sandbox, or group of State 

sandboxes, or other limited scope State 

authorization program (‘‘State 

sandbox’’).37 The Bureau is interested in 

entering into agreements with State 

authorities designed to improve upon 

existing disclosure requirements 38 by 

allowing covered persons to test 

disclosures within the state sandbox. 

Specifically, the Bureau expects that, in 

specified circumstances, such entities 

could receive permission to conduct a 

trial disclosure program pursuant to the 

Bureau’s agreement with the State 

authority, rather than through the 

process described in Sections A, B, and 

C. The Bureau is interested in 

negotiating agreements that include the 

following features. First, the State 

sandbox must contain safeguards that 

protect consumers from deception. 

Second, the State sandbox must be 

limited in time or scope. Third, the 

State sandbox entity must agree to 

provide the Bureau with data to assist 

the Bureau in assessing whether the 

disclosure (or disclosures) used within 

the scope of the state sandbox improves 

upon existing disclosures based upon 

cost effectiveness, consumer 

understanding, or otherwise. 

Alternatively, the State authority may 

agree to periodically provide the Bureau 

with such data regarding the disclosures 

used by participants in the State 

sandbox. 

Under this Section, a State sandbox 

entity’s authorization under the TDP 

Policy will be limited to the parameters 

of the State sandbox. If the entity seeks 

wider authorization under the TDP 

Policy, it must submit an application 

following the standard permission 

process detailed in Sections A, B, and 

C. Successful results from disclosures 

used within a State or other jurisdiction 

will be highly persuasive in supporting 

such an application under the TDP 

Policy. 

Furthermore, the Bureau wishes to 

coordinate with other regulators. To this 

end, the Bureau intends to enter into 

agreements whenever practicable to 

coordinate permission to conduct trial 

programs with similar programs 

operated by State, Federal, or 

international regulators. 

F. Bureau Disclosure of Information 

Regarding Trial Disclosure Programs 

The Bureau intends to publish notice 

on its website of any trial disclosure 

program permitted under Section C or 

D.39 The notice will: (i) Identify the 

company or companies conducting the 

trial disclosure program; (ii) summarize 

the new disclosures to be used and the 

duration of their intended use; and (iii) 

state that the waiver applies only to the 

testing company or companies in 

accordance with the permitted terms of 

use. 

Public disclosure of any other 

information regarding trial disclosure 

programs is governed by the Bureau’s 

Rule on Disclosure of Records and 

Information.40 For example, the rule 

requires the Bureau to make available 

records requested by the public unless 

they are subject to a FOIA exemption or 

exclusion. To the extent the Bureau 

wishes to disclose information regarding 

trial disclosure programs, the terms of 

such disclosure will be included in the 

1032(e) Trial Disclosure Waiver: Terms 

and Conditions document. Consistent 

with applicable law and its own rules, 

the Bureau will not seek to disclose any 

test data that would conflict with 

consumers’ privacy interests. 

Dated: August 30, 2018. 

Mick Mulvaney, 

Acting Director, Bureau of Consumer 

Financial Protection. 

[FR Doc. 2018–19385 Filed 9–7–18; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2017–1085; Product 

Identifier 2016–SW–094–AD] 

RIN 2120–AA64 

Airworthiness Directives; Airbus 

Helicopters Deutschland GmbH 

Helicopters 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: We propose to adopt a new 

airworthiness directive (AD) for Airbus 

Helicopters Deutschland GmbH (Airbus 

Helicopters) Model MBB–BK 117 A–1, 

MBB–BK 117A–3, MBB–BK 117 A–4, 

MBB–BK 117 B–1, MBB–BK 117 B–2, 

MBB–BK 117 C–1, and MBB–BK 117 C– 

2 helicopters. This proposed AD would 

require repetitive inspections of the tail 

rotor (T/R) gearbox housing. This 

proposed AD is prompted by a report 

that a crack was found in a T/R gearbox 

housing. The actions of this proposed 

AD are intended to address an unsafe 

condition on these products. 

DATES: We must receive comments on 

this proposed AD by November 9, 2018. 

ADDRESSES: You may send comments by 

any of the following methods: 

• Federal eRulemaking Docket: Go to 

http://www.regulations.gov. Follow the 

online instructions for sending your 

comments electronically. 

• Fax: 202–493–2251. 

• Mail: Send comments to the U.S. 

Department of Transportation, Docket 

Operations, M–30, West Building 

Ground Floor, Room W12–140, 1200 

New Jersey Avenue SE, Washington, DC 

20590–0001. 


daltland on DSKBBV9HB2PROD with PROPOSALS