The American Fintech Council (AFC), the industry association representing fintech and banks, has given its support for The Fair Audits and Inspections for Regulators’ (FAIR) Exams Act, which aims to enhance transparency and accountability in bank examinations.
The bipartisan legislation – introduced by US Senator Jerry Moran (R-KS) and co-sponsored by US Senators Joe Manchin (D-WV), Bill Hagerty (R-TN), and Thom Tillis (R-NC) – also seeks to create a robust appeals process for legitimate disagreements between financial institutions and their regulators.
The proposed legislation would increase accountability in bank examinations by establishing an independent review and appeal process to resolve disagreements between banks and regulators. It would also hire an independent director to review disputes and refer appeals to an administrative law judge.
Additionally, the FAIR Exams Act would require timely responses to bankers during exams and reduce examination burdens for financial institutions by establishing additional transparency and efficiency measures.
AFC has consistently advocated for a clear and consistent regulatory framework that reflects industry developments and clarifies supervisory expectations for innovative financial services business models, products and services.
“Innovative banks are rightfully held to the highest standard of transparency, compliance and responsibility when offering safe products that are creating critical access to financial services.” said Phil Goldfeder, CEO of the American Fintech Council.
“Regulators should be held to the same standard of excellence to protect the safety and integrity of the financial system. AFC has consistently advocated for a clear and consistent regulatory framework that reflects industry developments and clarifies supervisory expectations for innovative financial services business models, products, and services.”
In addition, Ian P. Moloney, SVP, head of policy and regulatory affairs, in AFC’s recent letter to Senators Moran and Manchin, stated: “AFC supports the FAIR Exams Act because it recognises the issues our members experience and seeks pragmatic solutions by increasing the oversight authority of the Federal Financial Institutions Examination Council to ensure clear, consistent, and accountable examination processes throughout the federal regulatory system.
“The pragmatic approach taken in the FAIR Exams Act reflects the policy aims of AFC and, if enacted, will significantly improve the examination process for the benefit of regulators, regulated entities, and the stability of the broader financial services industry.”