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.