The CFPB said it will not pursue enforcement or supervision actions against entities that fail to meet future deadlines under the Registry of Nonbank Covered Persons Subject to Certain Agency and Court Orders regulation, which took effect in July 2024. The policy specifically covers the April 14, 2025 registration deadline for entities subject to 12 CFR 1092.206(a)(2) and the July 14, 2025 deadline for those under 12 CFR 1092.206(a)(3).
Instead of focusing on registry compliance, the Bureau said it "will continue to focus its enforcement and supervision activities on pressing threats to consumers." The agency did not specify what violations or enforcement challenges led to this policy shift, but the move suggests the registration requirements may have proven burdensome for smaller financial services providers.
The CFPB went further, indicating it is "considering issuing a notice of proposed rulemaking to rescind the regulation or narrow its scope." This suggests the agency may eliminate the registry requirement altogether or significantly reduce its coverage of nonbank financial companies subject to agency or court orders.
The registry regulation, published in the Federal Register on July 8, 2024, requires certain nonbank covered persons to register with the CFPB if they are subject to specific agency orders or court judgments. The rule was part of the Bureau's broader effort to track and monitor nonbank financial services providers that have faced regulatory action.
The announcement represents a notable policy reversal from the CFPB's previous stance on nonbank oversight and suggests the agency may be scaling back certain regulatory requirements in response to industry concerns or administrative burden considerations.
The Bureau's decision to announce this enforcement discretion publicly, rather than quietly de-prioritizing the rule, indicates the agency wants to provide clarity to affected entities about compliance expectations. Companies that had been preparing for the upcoming deadlines can now focus resources elsewhere while awaiting potential formal rulemaking.