• US Corporate Law News: CFPB Invites Comments for 'Disclosure Sandbox' Policy
  • September 28, 2018 | Author: M. Ridgway Barker
  • Law Firm: Withers Bergman LLP - Greenwich Office
  • The Consumer Financial Protection Bureau has invited the public to comment on its proposal to create a “Disclosure Sandbox” through its revised Policy to Encourage Trial Disclosure Programs. The proposed revisions have the following goals: (1) reducing the application burden and review time frame; (2) increasing guidance regarding the testing time frame; (3) specifying procedures for extensions of successful trial disclosure programs; and (4) providing for coordination with existing or future programs offered by other regulators designed to facilitate innovation. The concept of a regulatory “sandbox” is relatively new and does not have a precise, generally accepted definition. The term is used in the CFPB policy to refer to a regulatory structure where a participant obtains limited or temporary access to a market in exchange for reduced regulatory barriers to entry or reduced regulatory uncertainty.