CFPB moves to withdraw open banking rule

The Consumer Financial Protection Bureau ’s new leadership has been pulling back, and the latest retreat is likely to affect open banking, also known as Section 1033. In a court filing May 23 , bureau leadership said the open banking rule is “unlawful and should be set aside.” Section 1033, which was finalized Oct. 22, was intended to govern how consumer financial data could be transferred and accessed. Read more on Section 1033 It is unclear what aspect of the rule the bureau deems unlawful, Kim Phan , partner in the Washington, D.C., office of Troutman Pepper Locke , told Bank Automation News . “We just don’t know what their reasons are yet,” said Phan, whose practice is focused on privacy, data security and regulatory compliance. The pullback on open banking is the latest change announced by the Consumer Financial Protection Bureau (CFPB) following President Donald Trump ’s inauguration in January. For example, in April, the CFPB issued let more than 1,400 employees go , leaving the agency with roughly 300 employees. The staff reduction itself is reason for concern over the CFPB’s latest moves, Phan said. “To do the things they have stated they want to do, like withdrawing this rule, they just need people,” she said. Because this is a final rule, the only way to withdraw it is to submit a notice in the Federal Register, provide an opportunity for public comment, take those comments and issue a withdrawal later, Phan said. “You need staff to do that.” The rule is not set aside yet, she said, noting this is just the beginning of the process. According to the court filing, defendants intend to file a motion for summary judgments by May 30.

CFPB moves to withdraw open banking rule

Depleted agency filed status report on open banking in court May 23

Digital banking transactions: SouthTrust Bank taps Jack Henry for upgrade

Movers and shakers: Michael Lehmbeck new CIO at AgFirst

Related Posts

Finzly launches security, assurance layer Assure in AI platform

OpenAI reports new AI safety incidents, sets disclosure plan

Prompt injection attacks: When AI follows someone else’s orders

Movers and shakers: Michael Lehmbeck new CIO at AgFirst

EMERGING FINTECH DIRECTORY

FinAi Podcast

SPONSORED

Build an Antifragile Strategy to Outperform the Market

How AI and Product Experts Turn Fuzzy Requirements Into Focused Dev-ready Roadmaps

Is Your Technology Supplier There for You?

Connect

Welcome Back!

Retrieve your password

Continue Reading with FinAi News Premium - Less than $2/Day

CFPB moves to withdraw open banking rule

Depleted agency filed status report on open banking in court May 23

Digital banking transactions: SouthTrust Bank taps Jack Henry for upgrade

Movers and shakers: Michael Lehmbeck new CIO at AgFirst

Related Posts

FinAi Podcast

Connect

Welcome Back!

Retrieve your password

Unlock This Article

Continue Reading with FinAi News Premium - Less than $2/Day