A regulatory consent order is a consent order entered into between a regulated firm and its supervisory or enforcement authority, as distinct from one approved by a court in private litigation. The firm agrees to the order's terms, typically without admitting or denying the regulator's findings, and the order is then legally binding and usually made public. The main entry explains consent orders in general and how they are used.
The qualifier is used to make the source clear. In the United States, banking agencies, securities and commodities regulators, consumer protection bodies and state financial regulators all issue such orders to resolve an enforcement action without a contested hearing. Courts also enter consent orders and consent decrees to settle lawsuits, and those follow different procedures.
A regulatory consent order commonly sets out the conduct found, imposes a civil money penalty, and requires corrective steps: strengthening compliance programmes, appointing an independent consultant or monitor, reviewing past transactions and compensating customers. It often restricts growth or new business until the regulator is satisfied. The required work is normally organised as a regulatory remediation plan, and the order stays in force until formally terminated. Breaching it can lead to further penalties. A cease and desist order issued by consent is closely related.