Welcome to the Research Assistant Weekly Newsletter - a subscriber-only resource for insight into emerging compliance challenges, details on peer calls, and links to new Research Assistant reports, documents, tools, and more.
At this week’s Research Assistant Peer Group meeting, we discussed the recent developments at the Consumer Financial Protection Bureau (CFPB). It’s clear that the CFPB is entering a new chapter, one that may be closer to its originally intended role: maintaining a strong, but balanced, consumer protection framework.
While the Bureau will continue to focus on protecting consumers and addressing misconduct, we are seeing a shift away from some of the broader regulatory overreach that made compliance a challenge. Despite our best efforts establishing robust compliance programs, regular risk assessments, and significant investments in internal oversight, it often felt uncertain whether we were fully meeting expectations, particularly when regulatory guidance was limited or unclear.
That said, it’s important to recognize the positive impact the CFPB has had on our industry. Their oversight pushed companies to prioritize compliance, enhance internal processes, and identify areas for meaningful improvement. Many organizations are stronger today, with more efficient operations, reduced litigation exposure, and greater overall confidence, thanks to the discipline built through risk assessments, audits, and proactive compliance efforts.
Now, the CFPB has announced plans to reduce its workforce from approximately 1,700 employees to around 200. This will likely lead to a more targeted enforcement approach, focusing on truly egregious misconduct rather than broader industry-wide examinations. An article recently published by insideARM Consumer Finance’s Deregulatory Shift—The Evolving Role of Compliance offers a helpful summary of what these changes may mean and is well worth a read as you consider future compliance strategies.
However, this is not the time for companies to relax their compliance posture. If leadership is breathing a sigh of relief, compliance professionals must emphasize that the risks are not disappearing, they are simply shifting.
With a less aggressive federal regulator, we can expect a growing emphasis on state-level regulation. States are already stepping forward to create their own consumer protection frameworks, which will likely lead to a patchwork of rules that vary significantly across jurisdictions. Unlike the CFPB, most states do not issue public exam procedures or supervision manuals, making compliance more complicated and dynamic.
Now is the time to strengthen your compliance foundation:
- Refine and modernize your policies and procedures.
- Consider how AI and technology can support regulatory monitoring and operational workflows.
- Build a proactive plan to track and respond to state legislative and regulatory developments.
A strong, agile compliance department will be even more critical in this evolving landscape. By staying ready and strategic, you can help ensure your organization remains protected and positioned for long-term success.
Documents and Crowdsourced Materials:
Top Reads:
Upcoming Webinars/ Other Announcements:
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- Have topics you want to discuss during the peer call? Please send them to Sara_Consultant@roundtables.us by Thursday to ensure it makes it on our agenda!
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