The Conference of State Bank Supervisors (CSBS) recently issued a press release, announcing that the CSBS has agreed to implement 14 specific recommendations from the CSBS Fintech Industry Advisory Panel (the Panel).
The Panel, which is comprised of 33 companies, was formed in 2017 to identify and remove unnecessary pain points in the multistate experience of fintechs and other nonbanks operating regionally or nationwide while improving financial supervision. The 14 recommendations primarily focus on creating uniform definitions and practices, increasing transparency, and expanding the use of common technology among all state regulators.
Some of the key recommendations that the CSBS agreed to implement include:
- Developing a 50-state model law to license money services businesses;
- Creating a standardized call report for consumer finance businesses;
- Building an online database of state licensing and fintech guidance, while encouraging a common standard;
- Developing a new technology offering, a State Examination System, to simplify examinations of nonbanks operating in more than one state; and
- Expanding the use of the Nationwide Multistate Licensing System among all state regulators and to all nonbank industries supervised at the state level.
The full list of the Panel’s recommendations can be found here.