Does a regulation’s Official Interpretation carry the same authority as the regulation itself?

Answered by:

Question:

Do Official Interpretations in regulations carry the force of law?

Answer:

Yes and no. OSC (Official Staff Commentary) aka “The Interpretations” are formal written regulatory clarifications intended to help readers better understand the regulation… often through the use of examples and additional explanation. Banks, examiners, and courts can (and do) rely on them, but they are not the final word if there is conflicting information. There is a hierarchy to bank law and regulation, and Interpretations can be trumped. They have less authority than the law or reg, so if there is a question, the OSC could find itself losing the argument.

Surprised? Learn more about regulatory hierarchy at the upcoming webinar “The Anatomy of Compliance Research – Stop Stumbling Through the Maze of Laws and Regs to Find the Answer!” on January 12, 2023!

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Learn more about Rebekah Leonard’s The Anatomy of Compliance Research – Stop Stumbling Through the Maze of Laws and Regs to Find the Answer!
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