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Financial Services Law Insights and Observations

CSBS seeks comments on modernized NMLS

Licensing CSBS NMLS State Issues State Regulators Non-bank

On April 15, the Conference of State Bank Supervisors (CSBS) announced a request for public comments on proposed requirements for developing a new system to modernize and streamline the NMLS licensing application process and “[p]romote efficient operations and networked supervision among regulators.” Key components of the proposal include:

  • A three-part licensing framework that divides licensing requirements into three categories: core, business-specific, and license-specific, with the goal of providing a standard set of requirements for companies, individuals, and locations “regardless of the industry they are operating in or license types they hold.”
  • A listing and description of core requirements as applicable to companies and individual licensees.
  • An overview of the identity verification process all users will complete when creating a new user account in the modernized NMLS.

CSBS emphasized that one of its Networked Supervision priorities is to establish a standardized licensing approach based on uniform requirements across all state nonbank financial regulatory agencies, and noted that the money services business industry will be the first industry to transition to the new system at some point in 2022. Comments on the proposal will be accepted through May 31.

 

 

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