The Dodd-Frank Wall Street Reform and Consumer Protection Act (Act) is one of the most comprehensive pieces of legislation reforming federal financial institutions regulation in U.S. history.The Act affects a wide range of providers of financial products and services, as well as business and consumer customers.
Among the main features of the Act are:
- Imposing federal regulation on systemically important nonbanks
- Requiring new regulatory standards for large bank holding companies and systemically important nonbanks
- Imposing restrictions under the “Volcker Rule” on banking entity proprietary trading and sponsorship of, and investment in, hedge funds and private equity funds
- Authorizing federal takeovers of nonbanks and bank holding companies that pose a significant threat to U.S. financial stability
- Establishing a new federal regulatory agency focused on consumer protection in regard to financial products and services
- Overhauling the mortgage lending industry, including strong incentives for originators to offer mortgage loan products that meet certain federal standards
- Developing a new regulatory structure for swaps and derivatives
- Changing the legislative structure related to credit rating agencies and requiring risk retention in connection with certain asset-backed securities
- Imposing new requirements involving investor protection, the registration of investment advisers, securities disclosures and securities enforcement
- Creating a federal office focused on the insurance industry, potentially leading to broad federal regulation of the insurance industry
The Act, in many respects, is only a first step in achieving an enhanced federal regulatory structure. In many instances, the impact of the Act will ultimately be determined by a rulemaking process or the results of a congressionally-mandated study.
Title I: Regulation of Systemically Significant Companies
Title II: Orderly Liquidation Authority
Title VI: The Volcker Rule
Title IX: Asset Securitization
Title X: Consumer Financial Protection Bureau
Title XIV: Mortgage Finance Reform — Ability-to-Repay and Qualified Mortgages
Dechert attorneys are focused on helping clients chart their course through this new and evolving regulatory structure. Dechert attorneys prepared an extensive summary of all 16 titles of the Act for the American Bankers Association (available here). In addition, Dechert attorneys are preparing a series of legal updates to discuss important aspects of the Act, which will be compiled here. This site is designed to serve as a one-stop destination for those seeking to stay informed of the developments and implications related to financial services reform through legal updates, publications, webinars, conferences and other programs.