The Consumer Financial Protection Bureau Thursday adopted arule to codify protections for privileged information submittedto the Bureau by the financial institutions it regulates.

“We are committed to safeguarding the confidential informationof the institutions we supervise to ensure the Bureau is bestequipped to do its job and protect consumers,” CFPB DirectorRichard Cordray said. “This new rule supports the free flow ofinformation that is essential to an effective supervisionprogram.”

In January 2012, the CFPB advised the institutions that itsupervises that the submission of privileged information to theCFPB does not waive any applicable privilege with respect to thirdparties. The new rule provides supervised entities furtherassurances that providing privileged information to the Bureau willnot adversely affect the confidentiality of such information. Thenew rule also makes clear that the CFPB's transfer of privilegedinformation to another Federal or State agency does not result in awaiver of any applicable privilege.

The Dodd-Frank Wall Street Reform and Consumer Protection Act(Dodd-Frank Act) provided the CFPB with the authority to issuerules necessary or appropriate to enable the Bureau to fulfill itsobligations to protect consumers of financial products andservices. The Dodd-Frank Act also specifically provided the Bureauwith authority to issue rules regarding the confidential treatmentof information obtained by the Bureau.

The Bureau released the proposed rule in March 2012. In issuingthe final rule, the CFPB considered public comments that werereceived. NAFCU said during the comment period that it supported the proposed rule as written.