Acting Consumer Financial Protection Bureau Director Russell Vought has initiated a comprehensive review aimed at reining in the agency’s reliance on guidance as a form of regulation. Vought is targeting what he describes as the “weaponization” of guidance, which encompasses bulletins, circulars, and other advisory materials that could potentially stretch back several years. This move signals a significant shift in how the bureau intends to govern financial practices, focusing on ensuring that its regulatory frameworks are more transparent and less reliant on interpretations rather than formal rule-making processes.
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