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The House Financial Services Committee today approved an amendment offered by Congressman Bill Posey (R-Rockledge) to require that a newly proposed Consumer Financial Protection Agency (CFPA) post a disclaimer stating that it does not endorse the products and services that it reviews.

“We don’t want some members of the public to believe that the existence of a Consumer Protection Financial Agency would completely eradicate risk or substantially reduce risk,” said Posey. “It was just last fall that investors lost hundreds of billions of dollars when they incorrectly believed that Fannie and Freddie back securities had a government guarantee. We don’t want the public making the same misperception about CFPA reviewed products into the future. No amount of government bureaucracy, oversight, or legislation can replace the due diligence of individuals deciding what financial products and services they wish to use and what level of risk they are comfortable with.”

Specifically, Posey’s amendment requires the CFPA to include on its website and on statements to the public that the agency does not endorse any particular product or service, and that consumers are expected to exercise their own due diligence in determining what financial products and services are appropriate for them.