US regulatory outlook: The beginning of the end
Four years since Dodd-Frank, several key rulemakings remain.
The Dodd-Frank Wall Street Reform and Consumer Protection Act is one of the most complex pieces of legislation ever written. Financial service firms and other impacted organizations are just beginning to understand the Act's many facets and its full impact.
Through this series, recognized leaders in our Regulatory practice will take A Closer Look at how the Act will impact several distinct market segments. Many of the new reforms and implementation issues are currently unclear and are subject to rule-making processes and various statutorily directed studies. PwC will continue to monitor developments and provide additional insight and analysis.
Four years since Dodd-Frank, several key rulemakings remain.
While banks continue to wait for regulatory guidance, five key questions need answering.
Making sense of the results from CCAR 2014.
Expect changes to the US Liquidity Coverage Ratio when finalized this quarter.
The CFTC offers a road map and timeline for cross border derivatives regulation, but much uncertainty remains.
The SEC recently issued a proposed rule that would fundamentally alter money market fund regulation and disclosure.
This A Closer Look discusses regulatory requirements and leading practices around model documentation, and how high-quality documentation can help mitigate model risk and reduce model-related costs.
This A Closer Look discusses what the new model risk management guidance means holistically for banks and provides a high-level roadmap for evolving the model risk management function.
In this A Closer Look, we summarize the existing options for reform and their impact, and handicap possible next steps.
Our paper outlines the evolution of the Legal Entity Identifier (LEI) within a financial regulatory context, presents the current state of financial industry readiness, and suggests activities for entities impacted by this change.
July 2012 - The three federal banking agencies released three notices of proposed rulemaking that will revise regulatory capital rules for US banking organizations and align them with the Basel III capital standards that were issued in December 2010 and subsequently updated in 2011 (Basel III).
April 2012 - In this A Closer Look, we review and analyze the Federal Reserve Board's new standards for systemically important financial institutions (SIFIs) that introduce a single counterparty exposure (concentration) limit.
December 2011 - We examine factors that define a nonbank financial company (NBFC) to make it subject to possible designation, a review of the three-stage determination process and of stage 1 criteria designed by the FSOC for designation.
November 2011 - The SEC and the CFTC adopted final rules as mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act to require registered advisers to report on new Form PF information concerning the private funds they advise. This A Closer Look describes the final rules requiring new Form PF and their impact.
July 2011 - SEC adopts final rules requiring many advisers to private funds to register with the SEC, establishing exemptions and new reporting requirements.
The Dodd-Frank Act will for the first time bring private equity fund advisers under the oversight of the SEC. The SEC recently indicated that private fund advisers—including advisers to private equity funds—will have until the first quarter of 2012 to complete their SEC registration and come into compliance with their new obligations under the Advisers Act. Advisers should use this brief additional time to ensure that they have implemented effective controls and compliance programs and are fully ready for registration. This A Closer Look describes the impact of Dodd-Frank on private equity advisers and looks into some of the particular issues they’ll face.
While Dodd-Frank is predominantly focused on financial regulatory reform, it also includes a number of corporate governance and disclosure requirements that are designed to achieve other public policy objectives. Among these is Section 1502, which requires new procedures and disclosures by all issuers (domestic and foreign) who use so-called “conflict minerals” in their products or manufacturing processes. In this A Closer Look, we focus on the potential impact on all companies that use these types of minerals.
The Dodd-Frank Act requires enhanced disclosure of incentive-based compensation arrangements by certain banks, credit unions, investment advisers, brokerage firms, and other financial institutions. It also prohibits any type of incentive-based compensation that, in the regulators determination, encourages inappropriate risks by providing excessive compensation, or has the potential to cause material financial loss to the covered firm. Regulators are directed to jointly adopt rules and guidelines to implement this provision. This A Closer Look provides a description of the incentive-based compensation restrictions and describes the proposed rule and its impacts, should the rule become final in its present form.
On January 19, 2011, the SEC released its study on the need for enhanced examination and enforcement resources for investment advisers, as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. This A Closer Look describes the study and the three options it proposes in more detail.
The SEC recently released Study on Investment Advisers and Broker-Dealers, its staff’s study evaluating the standards of care for broker-dealers and investment advisers when providing personalized investment advice and recommendations about securities to retail customers. This A Closer Look describes the study, as well as some of the implications of its recommendations.
The SEC and the CFTC recently proposed a new rule that would require registered investment advisers to private funds to file new reports that would help the agencies assess those advisers’ systemic risk. The proposal is intended to implement Section 404 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. If adopted, the rule would impose substantial reporting burdens on affected advisers, particularly those with over $1 billion in assets under management. This A Closer Look describes the proposal and its possible impact on advisers to hedge funds, private equity funds, and liquidity funds.
A stated goal of the Dodd-Frank Act was to improve transparency and accountability in the US financial system. Due to the Act’s breadth and the time regulators will need to interpret and implement its many provisions, industry experts anticipate that it will take several years for changes to be fully instituted. This A Closer Look will look at the impact of Dodd-Frank to an organization and its human capital.
As a part of our ongoing Dodd-Frank A Closer Look series, we are pleased to provide you with a special edition in our A Closer Look series. This special edition A Closer Look, Dodd-Frank at the Six-Month Milestone, A Work in Process, summarizes the key progress on Dodd-Frank at the six-month milestone.
While many financial and nonfinancial companies will see their businesses change under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank, or “the Act”), perhaps no group faces more substantial challenges to its business model’s long-term viability than thrifts and thrift holding companies. Technically, thrift holding companies are regulated as "savings and loan holding companies." We use instead "thrift holding companies" to reflect the fact that thrift is a more encompassing description of institutions with a savings association charter. This A Closer Look explores the impact of Dodd-Frank on thrifts and thrift holding companies.