Will the 401(k) industry have another federal agency looking over its shoulder? Though the SEC and DOL have been the primary regulators, there are signs that the Consumer Financial Protection Bureau (CFPB) could be entering the fray, according to a report by Bloomberg. Though the consumer bureau does not have direct jurisdiction over investments, it could step in if the other agencies don’t.
The CFPB opened officially in July 2011. Currently most of its attention is focused on consumer credit products like credit cards and mortgages, and it’s likely to turn its attention to prepaid debit card and other short-term credit products as well. Longer term, though, there are indications that the CFPB will be focusing on retirement issues, with many aging consumers facing the so called “rollover moment.” Established by Dodd-Frank, the agency could claim jurisdiction through its Office for Older Americans, run by Hubert H. Humphrey III, the former attorney general of Minnesota, with a mandate to improve financial literacy.
