21 October 2020 - Article
The Consumer Financial Protection Bureau has invited the public to comment on its proposal to create a “Disclosure Sandbox” through its revised Policy to Encourage Trial Disclosure Programs. The proposed revisions have the following goals: (1) reducing the application burden and review time frame; (2) increasing guidance regarding the testing time frame; (3) specifying procedures for extensions of successful trial disclosure programs; and (4) providing for coordination with existing or future programs offered by other regulators designed to facilitate innovation. The concept of a regulatory “sandbox” is relatively new and does not have a precise, generally accepted definition. The term is used in the CFPB policy to refer to a regulatory structure where a participant obtains limited or temporary access to a market in exchange for reduced regulatory barriers to entry or reduced regulatory uncertainty. For more information see https://www.consumerfinance.gov/policy-compliance/notice-opportunities-comment/open-notices/policy-encourage-trial-disclosure-programs/
This article was written with contributions from Tim Piscatelli.