CFPB Rule Regarding Privileged Information

New regulation attempts to protect from disclosure privileged information provided by financial institutions to the Consumer Financial Protection Bureau, or shared by the Bureau with other agencies.

On June 28, the Consumer Financial Protection Bureau (CFPB or the Bureau) adopted a proposed rule intended to protect financial institutions' privileged information from disclosure when that information is offered to the CFPB for supervisory purposes. Under the rule, neither an institution's delivery of privileged information to the CFPB nor the CFPB's subsequent transfer of that information to another government agency or regulator waives any privilege the institution could otherwise claim.