SAFE Guidance Act
The SAFE Guidance Act would require the heads of specified U.S. financial regulatory agencies to place a “guidance clarity statement” on any guidance they issue after the law’s enactment. The statement must appear on the first page and declare that the guidance does not have the force of law, does not create rights or obligations, is not binding on the agency or the public, and that noncompliance with the guidance does not automatically show a violation of law. The bill defines which agencies are covered and what counts as guidance, while excluding formal rules and internal or non-substantive guidance from this requirement. The aim is to curb the practice of enforcing informal guidance as if it were binding law, increasing transparency around how agencies communicate expectations to regulated entities. The bill is titled the Stop Agency Fiat Enforcement of Guidance Act (SAFE Guidance Act) and is currently introduced in the House, with the sponsor listed as Mr. Meuser. The effective scope applies to guidance issued after enactment and targets a defined group of financial regulators, including the CFPB, HUD, Treasury, FDIC, FHFA, the Federal Reserve, NCUA, OCC, and the SEC.
Key Points
- 1Requirement to display a guidance clarity statement on all guidance issued after enactment by specified financial agencies.
- 2Content of the guidance clarity statement: “This guidance does not have the force and effect of law and therefore does not establish any rights or obligations for any person and is not binding on the agency or the public. If this guidance suggests how regulated entities may comply with applicable statutes or regulations, noncompliance with this guidance does not conclusively establish a violation of applicable law.”
- 3Definition of “financial agency” includes CFPB, HUD, Treasury, FDIC, FHFA, Federal Reserve, NCUA, OCC, and SEC.
- 4Definition of “guidance” includes statements of general applicability that influence future behavior on policy, statutory, regulatory, or technical issues, but excludes formal rules (notice-and-comment), rules exempt from rulemaking, agency organizational rules, adjudicative decisions, internal guidance not intended to have broad future effect, and internal executive branch legal advice.
- 5Post-enactment scope only; guidance issued before enactment is not required to include the statement (based on the text provided).
- 6The act does not alter the substantive content of the guidance itself, only the requirement to attach a clarity statement and its placement on the document.