CSBS Releases Its Fintech Industry Advisory Panel Recommendations for Streamlining State Nonbank Supervision

On February 14, 2019, the Conference of State Bank Supervisors (“CSBS”) released its Fintech Industry Advisory Panel (“Advisory Panel”) recommendations for streamlining state nonbank supervision. According to the CSBS, it agreed to implement 14 specific recommendations (“Recommendations”) from the Advisory Panel, primarily in the areas of creating uniform definitions and practices, increasing transparency and expanding the use of common technology among all state regulators.

Among the Recommendations the CSBS agreed to are:

• Developing a 50-state model law to license money services businesses;
• Creating a standardized call report for consumer finance businesses;
• Building an online database of state licensing and fintech guidance, while encouraging a common standard;
• Developing a new technology offering, a State Examination System, to simplify examinations of nonbanks operating in more than one state; and
• Expanding the use of the Nationwide Multistate Licensing System (NMLS) among all state regulators and to all nonbank industries supervised at the state level.

For a full list of the Recommendations click here.

The Recommendations were based on the reports and recommendations made by two subgroups of the Advisory Panel, one focused on lending and another focused on payments.

For the full Lending Subgroup Report click here. This report contains interesting discussion relevant to the mortgage industry.

For the full Payments Subgroup Report click here.

The Advisory Panel is one of several initiatives within CSBS Vision 2020, which is intended to modernize the financial regulation of nonbanks, in part by moving towards harmonization of multistate licensing and supervision.

If you have any questions regarding the Fintech Advisory Panel reports and Recommendations, please reach out to Solomon Maman.

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