[Federal Register Volume 79, Number 117 (Wednesday, June 18, 2014)]
[Rules and Regulations]
[Pages 34622-34623]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-14228]


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BUREAU OF CONSUMER FINANCIAL PROTECTION

12 CFR Part 1081

[Docket No.: CFPB-2013-0030]
RIN 3170-AA29


Rules of Practice for Issuance of Temporary Cease-and-Desist 
Orders

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Final rule.

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SUMMARY: On September 26, 2013, 78 FR 59163, the Consumer Financial 
Protection Bureau (Bureau) published in the Federal Register an interim 
final rule establishing procedures for the issuance of a temporary 
cease-and-desist order (TCDO) pursuant to section 1053(c) of the Dodd-
Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), 
which requires the Bureau to prescribe rules establishing procedures 
for the conduct of adjudication proceedings. After reviewing and 
considering the single public comment offered on its interim final 
rule, the Bureau adopts the interim final rule without change.

DATES: This final rule takes effect on July 18, 2014.

FOR FURTHER INFORMATION CONTACT: John R. Coleman, Senior Counsel, Legal 
Division, Consumer Financial Protection Bureau, 1700 G Street NW., 
Washington, DC 20552; at (202) 435-7254.

SUPPLEMENTARY INFORMATION: 

I. Background

    On June 29, 2012, the Bureau published in the Federal Register the 
final Rules of Practice for Adjudication Proceedings pursuant to 
sections 1022(b)(1) and 1053(e) of the Dodd-Frank Act, 12 U.S.C. 
5512(b)(1) & 5563(e).\1\ That final rule, however, does not apply to 
the issuance of a TCDO pursuant to section 1053(c) of the Dodd-Frank 
Act.\2\ The Bureau previously invited comments as to whether special 
rules governing such proceedings are necessary and, if so, what the 
rules should provide.\3\ One commenter recommended that the Bureau 
promulgate rules governing temporary cease-and-desist proceedings 
initiated pursuant to section 1053(c) of the Dodd-Frank Act and pointed 
to the Federal Deposit Insurance Corporation's (FDIC) rules governing 
temporary cease-and-desist proceedings, 12 CFR 308.131, as an example 
of such rules.\4\
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    \1\ See 77 FR 39058 (June 29, 2012) (codified at 12 CFR Part 
1081).
    \2\ Id. at 39058.
    \3\ See 76 FR 45338, 45338 (July 28, 2011).
    \4\ See 77 FR 39058, 39060 (June 29, 2012).
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    On September 26, 2013, 78 FR 59163, the Bureau published its 
interim final rule establishing procedures for the issuance of a 
temporary cease-and-desist order (TCDO) pursuant to section 1053(c) of 
the Dodd-Frank Act. In developing the interim final rule, the Bureau 
considered the procedures related to temporary cease-and-desist orders 
that are followed by other regulatory agencies, including the FDIC, the 
Securities and Exchange Commission, and the Office of the Comptroller 
of the Currency. The interim final rule most closely follows the FDIC's 
approach as codified in 12 CFR 308.131. The Bureau issued the interim 
final rule to clarify (1) the basis for the issuance of a TCDO; (2) the 
content, scope, and form of a TCDO; (3) the procedures governing the 
issuance of a TCDO and the remedies available to the Bureau in issuing 
a TCDO; and (4) the rights of persons subject to a TCDO.
    The interim final rule described each section of the rule and 
explained the basis of the rule with reference to rules of other 
agencies as appropriate. After reviewing and considering the single 
public comment offered, the Bureau adopts the interim final rule 
without change.

II. Legal Authority

    The Bureau promulgates this final rule pursuant to its authority to 
implement section 1053 of the Dodd-Frank Act, 12 U.S.C. 5563(e), as 
well as its general rulemaking authority to promulgate rules necessary 
or appropriate to carry out the Federal consumer financial laws, 12 
U.S.C. 5512(b)(1).

III. Public Comment on the Interim Final Rule

    In response to the interim final rule, the Bureau received one 
comment letter that did not contain any specific comments or 
suggestions pertaining to the interim final rule. Accordingly, the 
Bureau is adopting the interim final rule without change.

IV. Section 1022(b) Provisions

    In developing the interim final and final rules, the Bureau has 
considered the potential benefits, costs, and impacts and has consulted 
or offered to consult with the prudential regulators, the Department of 
Housing and Urban Development, and the Federal Trade Commission, 
including with regard to consistency with any prudential, market, or 
systemic objectives administered by such agencies.\5\
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    \5\ Section 1022(b)(2)(A) of the Dodd-Frank Act calls for the 
Bureau to consider the potential benefits and costs of a regulation 
to consumers and covered persons, including the potential reduction 
of access by consumers to consumer financial products or services; 
the impact on depository institutions and credit unions with $10 
billion or less in total assets as described in section 1026 of the 
Dodd-Frank Act; and the impact on consumers in rural areas. Section 
1022(b)(2)(B) directs the Bureau to consult with the appropriate 
prudential regulators or other Federal agencies regarding 
consistency with objectives those agencies administer. The manner 
and extent to which these provisions apply to a rulemaking of this 
kind, which establishes Bureau procedures and imposes no standards 
of conduct, is unclear. Nevertheless, to inform this rulemaking more 
fully, the Bureau performed the analyses and consultations described 
in those provisions of the Dodd-Frank Act.
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    The Dodd-Frank Act requires the Bureau to prescribe rules 
establishing such procedures as may be necessary to carry out section 
1053 of the Act, which provides for temporary cease-and-orders in 
subsection (c). The final rule itself does not impose significant costs 
upon covered persons, but, consistent with section 1053, provides a 
straightforward and efficient process for the issuance of a temporary 
cease-and-desist order, and a direct route to judicial review.
    The final rule has no unique impact on insured depository 
institutions or insured credit unions with $10 billion or less in 
assets described in section 1026(a) of the Dodd-Frank Act, nor does it 
have a unique impact on rural consumers.

V. Regulatory Requirements

    As the Bureau noted in publishing the interim final rule, this rule 
relates solely

[[Page 34623]]

to agency procedure and practice and, thus, is not subject to the 
notice and comment requirements of the Administrative Procedure Act, 5 
U.S.C. 553(b). Because no notice of proposed rulemaking is required, 
these regulations are not a ``rule'' as defined by the Regulatory 
Flexibility Act, 5 U.S.C. 601(2), and no initial or final regulatory 
flexibility analysis is required.

VI. Paperwork Reduction Act

    The Bureau has determined that the regulations in this subpart do 
not impose any new recordkeeping, reporting, or disclosure requirements 
on covered entities or members of the public that would constitute 
collections of information requiring approval under the Paperwork 
Reduction Act, 44 U.S.C. 3501 et seq.

List of Subjects in 12 CFR Part 1081

    Administrative practice and procedure, Banking, Banks, Consumer 
protection, Credit, Credit unions, Law enforcement, National banks, 
Savings associations, Trade practices.

Authority and Issuance

    For the reasons set forth above, the interim final rule amending 12 
CFR part 1081 published at 78 FR 59163, September 26, 2013, is adopted 
as a final rule without change.

    Dated: June--10, 2014.
Richard Cordray,
Director, Bureau of Consumer Financial Protection.
[FR Doc. 2014-14228 Filed 6-17-14; 8:45 am]
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