McHenry Reintroduces Legislation to Spur Financial Innovation
Washington,
December 19, 2022 -
The top Republican on the House Financial Services Committee, Patrick McHenry (NC-10), reintroduced H.R. 9556, the Financial Services Innovation Act, to modernize and streamline how innovators interact with regulators to build a more inclusive financial system.
“It’s critical for our regulatory process to work with financial innovation, instead of against it,” said Chairman-elect McHenry. “I’m reintroducing the Financial Services Innovation Act to modernize and streamline how innovators interact with regulators to build a more inclusive financial system. My legislation will help financial institutions and entrepreneurs get innovative products and services to market sooner, while maintaining critical consumer protection safeguards. This follows the successful model of North Carolina’s regulatory sandbox program to strike the appropriate balance to foster responsible innovation. Committee Republicans will continue to work toward an up-to-date regulatory framework that gives fintech firms clear rules of the road for success.”
Background:
H.R. 9557 requires federal regulators to create Financial Services Innovation Offices (FSIOs) within their agencies to foster innovation in financial services.
Companies may apply for an “enforceable compliance agreement” with the FSIOs that, if accepted, will allow them to provide an innovative product or service under an alternative compliance plan, which waives or modifies regulation that is out-of-date or unduly burdensome.
Chairman-elect McHenry previously introduced the Financial Services Innovation Act in 2019 and 2016.
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