Dodd Frank Reform And Consumer Protection Act

1709 WordsApr 5, 20177 Pages
Dodd-Frank The full name of the bill is the Dodd-Frank Wall Street Reform and Consumer Protection Act, but it is mostly known as Dodd-Frank. The Dodd-Frank Act is a United States federal law, which is divided into sixteen titles that places major regulations on the financial industry with the purpose of restraining another major financial market collapse. The stated aim of the legislation is: “To promote the financial stability of the United States by improving accountability and transparency in the financial system, to end "too big to fail", to protect the American taxpayer by ending bailouts, to protect consumers from abusive financial services practices, and for other purposes” (Thomas, 2010). Due to the Great Recession of the late…show more content…
The Office of Financial Research is designed to support the Financial Stability Oversight Council in range of researching and collecting data. The Director has supreme power and may require any financial institution (bank or non-bank) to provide any needed information for reseaching and analyzing. The Office can also standardize the way financial data is reported, with the constituent agencies having three years to implement new guidelines. Investor Protection Measures and Reform “The Act reviews the powers and structure of the Securities and Exchange Commission (SEC), credit rating organizations, and the relationships between customers and broker-dealers or investment advisers” (David S. Huntington, Paul, Weiss, Rifkind, Wharton & Garrison LLP, 2010). It provides corporate governance and executive compensation reforms, such as proxy access, chairman and CEO disclosures, broker discretionary voting (Corporate Governance); say-on-pay, say-on-golden parachutes, broker discretionary, compensation committees, executive compensation claw backs (Executive compensation). In order to be active and operational, these provisions require further action by the SEC, the stock exchanges or other regulators except the say-on-pay, say-on-golden parachute and broker discretionary voting requirements. Most of
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