CSBS Issue Briefings - August 2020

Act (H.R. 241) would amend the Bank Services Company Act to allow better federal-state coordination in supervising third-party vendors by supporting the ability of these banks to leverage innovation and work with innovative partners consistent with safe and sound operations. The House unanimously approved the measure by a voice vote in September. A companion bill, S. 4154, was introduced in the Senate in July 2020. CSBS urges the Senate to do the same, as the bill would support the ability of these banks to leverage innovation and work with innovative partners consistent with safe and sound operations.

Why it Matters to State Regulators

State regulators run the risk of having “the old patchwork quilt” used as an excuse for federalizing nonbank regulation. Vision 2020 demonstrates a commitment to a more networked and connected state system and the states’ ability to meet i nnovation while strengthening consumer protection.

Talking Points

• State regulators are the primary regulator of nonbanks. • State regulators are working to strengthen and harmonize nonbank regulation. • State regulators are moving towards an integrated, 50-state system of regulation. • CSBS Vision 2020 represents the collective efforts to achieve the 50-state goal. Here is a short video or hear more from John Ryan. SME Contact: Margaret Liu, Sr. VP, Legislative Policy & Deputy General Counsel: (202) 728-5749 or mliu@csbs.org

Date Updated: 08/24/2020

FOR STATE REGULATOR USE ONLY