If a regulation comes out and then later you find out the FFIEC is requesting comments or trying to come up with implementation regulations for the same rule does that mean that we did not have to be complying with the regulation all that time? Fr example, I am about to begin a FACT Act audit and part of the audit involves our practices for handling consumer disputes and correcting inaccurate information we have provided to a credit bureau. So, on 12/13 the FFIEC published a notice of proposed rulemaking on section 312 which deals with this subject. So, should I take it out of the audit scope?

A notice of proposed rulemaking is just that--proposed. Although many rules are adopted substantially as proposed, some are rejected and others undergo substantial change. In all cases there will be an "effective date." No rule becomes mandatory until that day.

If a new rule replaces an existing one, the old rule remains in effect until the effective date of the new one. Workable rules, however, usually contain a phase-in period. During this period you continue complying with the old rule while you are implementing the new.

Thank you, Richard, for your help.