On June 26, the CFPB issued a final rule outlining new procedures for establishing supervisory authority over nonbanks that it has “reasonable cause” to believe pose “risks to consumers” with regard to consumer financial products or services. The rule outlines the procedures by which the CFPB will notify nonbanks that they are being considered for supervision and how they can respond to the CFPB’s notice. The CFPB’s determination regarding whether and when to issue a “Notice of Reasonable Cause” will be based on complaints collected by the Bureau or on information from other sources, including judicial opinions and administrative decisions. Once supervised, a nonbank is subject to the CFPB’s authority to require reports and conduct examinations, but can petition to end the supervision after two years and annually thereafter. The final rule takes effect 30 days after its publication in the Federal Register.