Thomas Brown of O’Melveny & Meyers just spoke about the interest of consumers and financial institutions on the new Consumer Financial Protection Bureau’s ability to regulate the disclosure of financial products to customers. Mr. Brown argues that such power would allow the CFPB to reshape the landscape of the industry. Mr. Brown spoke on the new “fully, accurately, and effectively disclosed” standard, a standard that is quite different than “not false and misleading.” Mr. Brown also brought to the fore three pertinent questions regarding this new disclosure standard:
1) Who must be permitted to understand?
2) What defines the universe of things that must be understood?
3) What does “permit to understand” mean?
To view Mr. Brown’s working paper click here.