What is the Dodd-Frank Act in simple terms?
An Act 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.
What does the Dodd-Frank Act protect?
The Dodd-Frank Act put restrictions on the financial industry and created programs to stop mortgage companies and lenders from taking advantage of consumers. Dodd-Frank added more mechanisms that enabled the government to regulate and enforce laws against banks as well as other financial institutions.
Who is exempt from the Dodd-Frank Act?
The Dodd-Frank Act exempts from registration “foreign private advisers,” or an investment adviser that (i) has no place of business in the U.S., (ii) has, in total, fewer than 15 clients in the U.S. and investors in the U.S. in private funds advised by the adviser, (iii) has aggregate assets under management …
What are two of the important provisions of Dodd-Frank?
Some of the main provisions found in the Dodd-Frank Act include: Banks are required to come up with plans for a quick shutdown if they approach bankruptcy or run out of money. Financial institutions must increase the amount of money they hold in reserve to account for potential future slumps.
Can the Dodd-Frank Act take your money?
As a response to the 2008 crisis, under the Obama Administration, financial reform legislation named The Dodd-Frank Wall Street Reform and Consumer Protection Act was passed in 2010. It will simply allow banks and financial institutions at risk of failing to take some of your deposits to bail themselves out.
What was a major goal of the Dodd-Frank Act quizlet?
The main goal of the Dodd-Frank Act was to allow banks to become international financial conglomerates.
What is Dodd-Frank adherence?
The Dodd-Frank regulations provide reform measures on banks and financial institutions to protect consumers and prevent another financial crisis. Compliance Alliance provides up-to-date Dodd-Frank compliance tools to help banks stay in front of any regulatory issues.
Why did the Dodd-Frank Act amended the Investment Advisers Act?
The Dodd-Frank Act also amended the Advisers Act to provide for an exemption from registration for foreign advisers that do not have a place of business in the United States, and have: Less than $25 million in aggregate assets under management from U.S. clients and private fund investors.
What is a foreign private adviser?
The Dodd-Frank Act added an exemption from SEC registration in Section 203(b)(3) for “foreign private advisers.” A “foreign private adviser” is defined as an investment adviser that (i) has no place of business in the United States, (ii) has less than $25 million in AUM related to clients or investors located in the …
What are the primary drivers of Dodd-Frank?
Its most important initial responsibility is designating systemically important financial institutions (SIFIs)—in other words, large, financially interconnected non-banks like AIG—for enhanced capital standards and regulation by the Federal Reserve.
What is section 957 of the Dodd-Frank Act?
Under Section 957 of the Dodd-Frank Act, national securities exchanges are required to prohibit broker voting with respect to the election of directors, executive compensation and any other significant matter, as determined by the SEC.
How does the Dodd Frank Act affect corporate governance?
Background: The Dodd-Frank Wall Street Reform and Consumer Protection Act contains numerous provisions which affect the governance of issuers. For example: Section 951 requires advisory votes of shareholders about executive compensation and golden parachutes. This section also requires specific disclosure of golden parachutes in merger proxies.
Which is an example of a Dodd-Frank Rule?
For example: Section 951 requires advisory votes of shareholders about executive compensation and golden parachutes. This section also requires specific disclosure of golden parachutes in merger proxies.
What are the requirements of Section 953 of the SEC?
Section 953 of the Act requires the SEC to adopt rules which require additional disclosures with respect to executive compensation in the following areas: the ratio of Chief Executive Officer compensation to the median annual compensation of all employees of the issuer excluding the Chief Executive Officer.