When regulators propose a new rule, financial institutions can often find themselves pushed into a reactionary position, left to deal with consequences that rule makers may not have foreseen. Once a rule hits the books, legal advisors dig into what the rule really means, compliance teams scramble to interpret the language and update policies, and operations teams work out how to implement necessary changes by what always feels like a tight deadline. But there is an earlier opportunity to understand how a rule may affect your business and even help change it for the better that you might miss: the public comment period.
For money services businesses, Fintechs, lenders, and other financial services providers, public comments are not just a formality of the bureaucratic process. They are a critical chance to help shape the rules by which they are governed before the rule is finalized. And thoughtful, well-crafted comments can have a real impact on the rules financial institutions have to play by.
So, how do you make your voice heard in a way that matters?
Step 1: Understand The Rule You Are Commenting On
Start by reviewing the proposed rule in detail. You will often find that the agency has provided a summary that outlines the purpose, scope, and intended impact of the proposed change. Focus on what it would mean for your business in practice. Does it align with the intent and purpose of the rule, or has it somehow missed the mark?
Think about the practical implications of the proposed change. Does the rule create new or duplicative reporting obligations? Does it introduce ambiguity or conflict with existing regulations? Would it change how you serve your customers, onboard clients, or conduct due diligence? These are all important factors to consider and will often be unique to your firm's products and business model.
Understanding the specifics of how the proposed rule will affect your business will give your comment weight and make it stand out from others.
Step 2: Make a Clear and Structured Case
Let us be clear: regulators are not tallying "for" and "against" comments. They are looking for clear, well-reasoned feedback that can help improve the rule. Your comment should be concise, organized, and grounded in your firm's real-world experience.
To start building your comment, you can start with a simple basic structure:
- Introduce Yourself: Explain who you are, what your company does, and your connection to the rule.
- Highlight Your Key Issues or Concerns: Identify the part of the rule you are addressing. Be specific – whether that means quoting problematic text, pointing out crucial clarifying information that is missing, or calling out ambiguity in the language used.
- Provide Evidence or Recommendations: Use operational data, customer impact, or regulatory precedent to support your position. If you are suggesting changes, explain exactly what you recommend and why. Remember not to use confidential or proprietary data, as your comments will be part of the public record.
- Finish with a Strong Conclusion: Summarize your main points and reinforce why your input matters. A strong conclusion can leave a lasting impression!
A well-structured comment should show that you are not just weighing in to be another voice in the chorus, but trying to help solve a problem.
Step 3: Keep It Professional and Focused
As in most areas of life, tone matters. A respectful, constructive comment is far more likely to be taken seriously than one that comes off as adversarial or emotionally driven. Focus on the rule and its real-world impact, not the people behind the rule.
If a requirement seems cumbersome, explain why and give examples. If a provision is unclear, suggest more precise language. This is about helping regulators craft better policies, not venting frustration. Without specific feedback, you might miss the chance to have your concerns addressed in the final rule.
Step 4: Follow the Instructions – And Do Not Miss the Deadline!
Agencies generally have specific requirements for submitting comments. Some use Regulations.gov, but many others have internal systems or accept comments by email. Check the official notice for details like deadlines, acceptable file formats, or identification requirements. Set a calendar reminder and put any relevant information in the reminder – you can even include a quick checklist if you need to.
Finally, make sure your comment is submitted on time. The deadlines for submitting regulatory comments are firm, and late submissions might not be considered. It would be a shame to take the time to carefully craft a thoughtful comment letter only to miss a 5 PM Eastern deadline!
Why Comment Periods Matter for Financial Services, Especially Right Now
Changes in the regulations surrounding financial services are happening at breakneck speed. We are seeing near-constant shifts in areas like Anti-Money Laundering (AML), consumer protection, digital assets, and cross-border payments. For institutions already navigating a complex compliance landscape, new or amended rules can introduce additional cost, complexity, and risk.
The public comment process gives your firm the chance to participate directly in the rulemaking process. Use that window to explain what works, what does not, and how policies could be better aligned with how your financial services are delivered to customers. Remember that the rule makers are not always as keyed into how a rule might affect financial institutions, and your perspective could provide valuable and novel insight.
Submitting a comment will not guarantee the change you hope to see, but it puts your perspective on the record and at least gives the rule makers a chance to see a different perspective.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
