McHenry Introduces Legislation to Spur Financial Innovation
Washington, October 21, 2019
Today, Congressman Patrick McHenry (NC-10), the Ranking Republican of the House Financial Services Committee, introduced H.R. 4767, the Financial Services Innovation Act of 2019. This legislation will modernize and streamline how innovators interact with regulators.
“Not only is financial innovation critical to our nation’s competitiveness, but it also makes it easier for all Americans to take part in our financial system,” said Congressman McHenry. “From saving for college to accessing capital to start a small business, we need a more modern banking system that meets the needs of the 21st Century American consumer. Outdated government regulation should not stand in the way.
“My legislation modernizes our regulatory framework to ensure that financial institutions and entrepreneurs can go to market with innovative products sooner, all while maintaining important consumer protections," McHenry continued. "Whether you are a small community bank with a new idea or an entrepreneur just trying to navigate complex financial regulations, this bill would ensure regulators reduce the barrier to innovation, keep pace with our rapidly changing banking system, and confront areas of regulatory uncertainty that hamper innovation.
“The Financial Services Innovation Act is the necessary first step toward creating a regulatory process that works with financial innovation, rather than against it.”
Background: H.R. 4767 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an innovative product or service under an alternative compliance plan, which waives or modifies regulation that is out-of-date or unduly burdensome.
Ranking Member McHenry previously introduced the Financial Services Innovation Act in 2016 and has advocated for the modernization of government regulations to benefit consumers throughout his time on the Financial Services Committee.