Examination and Supervisory Privilege Parity Act of 2014 (H.R. 5062)

Development: Obama signs measure meant to protect confidentiality of data shared by regulators; act calls for CFPB to coordinate with states.

Takeaway: Law provides assurances to lenders, reduces regulatory burden, sponsor says.

Sept. 26 (BNA) -- President Barack Obama Sept. 26 signed a measure (H.R. 5062) meant to protect the confidentiality of financial data shared by regulators.

The Examination and Supervisory Privilege Parity Act of 2014 requires the Consumer Financial Protection Bureau to coordinate its supervisory activities with the supervisory activities of the state agencies that license, supervise or examine the offering of consumer financial products or services.

The House approved the measure in July (13 PVLR 1359, 8/4/14). It cleared the Senate without amendment by unanimous consent in September.

Sharing of Information

Under H.R. 5062, the sharing of information with such regulators, authorities and agencies won't be construed as waiving, destroying or otherwise affecting any legal privilege claimed by nondepository entities under federal or state law. The legislation aims to resolve the disparity in 15 states where businesses aren't overseen by regulatory agencies but rather by a separate entity such as the attorney general's office, according to a statement by Reps. Ed Perlmutter (D-Colo.) and Andy Barr (R-Ky.), the bill's sponsors, issued upon House passage.

In a statement provided to Bloomberg BNA after the signing, Perlmutter said the measure “provides greater assurances to consumer lenders and reduces regulatory burdens by resolving disparities between state and federal regulators.”

To contact the reporter on this story: Jeff Bater in Washington at jbater@bna.com

To contact the editor responsible for this story: Joe Tinkelman at jtinkelman@bna.com

For More Information

H.R. 5062, as passed by Congress, is available at http://www.gpo.gov/fdsys/pkg/BILLS-113hr5062enr/pdf/BILLS-113hr5062enr.pdf