CFPB Changes Supervisory Designation Proceeding Rules to Increase Confidentiality

The CFPB recently announced that it is restoring the confidentiality of supervisory designation proceedings by rescinding most of the April 2022, November 2022, and April 2024 amendments to its Procedures for Supervisory Designation Proceedings.

The amendments being rescinded allowed, among other things, public release of the CFPB’s final determination on whether to designate an entity for supervision and had the CFPB’s Director make the determination on whether an entity should be designated without having a subordinate agency official first analyze the issue and make a recommendation.

Under the version of the rule which will be in effect going forward, information related to the proceedings will not be publicly disclosed and is considered confidential supervisory information.  A person that is served notice of reasonable cause to be designated can contest the supervisory designation or voluntarily consent to supervision.  The CFPB had concerns that the prior process put inappropriate pressure on entities to consent to the supervisory designations because consenting would remain confidential, but contesting would be made public.

However, because publicly releasing some information about the proceedings may promote consistency and predictability, the CFPB is separately publishing a notice of proposed rulemaking to better define the legal standard applicable to supervisory designation proceedings.

This change becomes effective on October 27, 2025.