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Federal financial institution regulators – including the NCUA and CFPB – Tuesday finalized a rule codifying the 2018 interagency statement that clarified the differences between regulations and supervisory guidance. NAFCU recently provided feedback to the agencies on the proposal, highlighting the need for better coordination between regulators and transparent guidance.

"The 2018 interagency statement reiterated well-established law by stating that, unlike a law or regulation, supervisory guidance does not have the force and effect of law," the NCUA said in a release. "As such, supervisory guidance does not create binding legal obligations for the public. Because it is incorporated into the final rule, the 2018 statement, as amended, is binding on the NCUA."

The bureau, in its release, said it "does not take enforcement actions or issue supervisory criticisms based on non-compliance with supervisory guidance. Rather, the supervisory guidance outlines supervisory expectations and priorities, or articulates views regarding appropriate practices for a given subject area."

In its comments on the rule, NAFCU called on the NCUA to pursue several improvements to exams and asked the bureau to refrain from issuing supervisory guidance that adds requirements "not explicitly stated in the regulations or law," and to commit to only issuing guidance as a reference tool going forward.

Relatedly, the NCUA is currently seeking feedback on its communication methods in an effort to increase transparency and promote efficiency. NAFCU-member credit unions can learn more about the request for information and submit comments via NAFCU's Regulatory Alert.