The CFPB has issued a final rule intended to codify protections for privileged information that CFPB-regulated financial institutions submit. The rule clarifies that an institution providing privileged information to the CFPB does not waive any applicable privilege with respect to third parties. It also clarifies that the CFPB’s transfer of privileged information to another federal or state agency does not result in a waiver of any applicable privilege.
The rule is substantively similar to the privilege-preservation provisions that apply to banks’ submitting such information to the prudential regulators. However, ABA has urged the CFPB to promote maximum legal certainty by continuing to support a legislative amendment that would provide express statutory protection to institutions subject to the bureau’s supervisory jurisdiction.
The rule will be effective 30 days after its publication in the Federal Register.