CFPB Issues Final Rule on Effective Date of New Regs

On December 28, 2012 a final rule was published clarifying when a CFPB rule becomes effective, it will be the earlier of:

  • when the final rule is posted on the Bureau’s Web site, or
  • when the final rule is published in the Federal Register

he Bureau’s Web site is www.consumerfinance.gov 

Clarifying what constitutes issuance of a rule is beneficial because in some cases the date of issuance of a rule has legal consequences.  For example, under section 1400(c)(3) of the Dodd-Frank Act, certain provisions of title XIV will go into effect on the date that is 18 months after the designated transfer date,unless relevant regulations are “issued” by that date. Given the Bureau’s practice of posting rules on its Web site before the Office of the Federal Register makes the rules available for public inspection or publishes the rules in the Federal Register, uncertainty could arise regarding the date on which such rules were issued. The Final Rule eliminates uncertainty by clarifying when the Bureau’s rules are deemed issued.

The Bureau generally intends to issue rules by posting them on its Web site, but, as a precaution, the Final Rule provides that a rule will be considered issued upon publication in the Federal Register if by inadvertence or for some other reason the rule is not posted on the Web site or is published in the Federal Register before it is posted on the Web site.