CFPB establishes new innovation unit to give clarity on existing rules

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CFPB establishes new innovation unit to give clarity on existing rules
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The Consumer Financial Protection Bureau is replacing its Office of Innovation with a new unit to support a broader initiative.

The new"Office of Innovation and Competition" will replace the previous Office of Innovation, which focused on analyzing areas needing special regulatory treatment for individual companies. That office was tasked with processing applications for No-Action letters and the terms of regulatory sandboxes.

Instead, the new office will"analyze obstacles to open markets, better understand how big players are squeezing out smaller players, host incubation events, and, in general, make it easier for people to switch financial providers," according to an announcement from the regulator. Instead of focusing on allowances for individual innovators, the new office seeks to broadly promote innovation.

"This will help level the playing field and foster competition by ensuring any actions the CFPB takes will apply to all companies in the market," said the announcement.

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