This will coordinate federal and state regulators in a bid to encourage financial innovation.
The ACFIN is made up of federal and state officials, as well as consumer market regulators. Every state regulator was invited to join, but the initial group of members will be the attorneys general of Alabama, Arizona, Georgia, Indiana, South Carolina, Tennessee, and Utah.
The network is intended to enhance “shared objectives such as competition, consumer access, and financial inclusion,” says the CFPB.
It will also benefit the US economy by promoting regulatory certainty for financial innovators. By keeping up with advances in the fintech space, CFPB says it can free companies from fraud, discrimination, and deceptive practices.
The network’s members agree to a charter which strives to facilitate this greater competition, consumer access, or financial inclusion in markets offering financial products and services.
The innovation has to take place in the US and none of the ACFIN charter will be used to pre-empt state law.
CFPB finished other innovation policies this month, including the no-action Letter (NAL) policy, trial disclosure policy and sandbox Policy.
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