WASHINGTON – Sen. Mike Rounds (R-S.D.) introduced a CUNA-backed regulatory relief bill Tuesday that would require regulators to take risk into account when promulgating regulations. The Taking Account of Institutions with Low Operation Risk (TAILOR) Act (S. 366) would reduce regulatory burden for financial institutions with lower risk profiles. CUNA wrote a letter of support Tuesday for this bill.
“As well-capitalized, low-risk financial institutions that have a long history of meeting their members’ needs, credit unions are precisely the type of institution that will benefit from Sen. Rounds’ bill,” said CUNA President/CEO Jim Nussle. “Regulatory and compliance-driven consolidation is taking a toll on the credit union industry, and this legislation is a step toward correcting that.”
The legislation would apply to the NCUA and the Consumer Financial Protection Bureau, as well as other federal financial regulatory agencies. It would require them to take into consideration the risk profile and business models of individual financial institutions and tailor regulations accordingly.
Additionally, S. 366 requires regulators to:
- Provide an annual report to congress outlining the steps they have taken to tailor their regulations; and
- Conduct a review of all the regulations issued by the agencies since the 2010 passage of the Dodd-Frank Act. If the review finds that the regulations do not conform to the TAILOR Act, the agency would be required to revise the regulations.
Tailored regulations are among the goals of CUNA’s Campaign for Common-Sense Regulation, launched earlier this year.
in Legislative & Political News