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July 21 marks the second anniversary of the Dodd-Frank Wall Street Reform and Consumer Protection Act being written into law, and the House Financial Services Committee is planning to challenge its merits all month long.
The Committee, chaired by Rep. Spencer Bachus, R-Ala., announced July 3 that it would be focusing its attention throughout this month on what it called “the burdens this law’s 2,300 pages and more than 400 new rules layer on American companies, financial markets and consumers.”
Part of the focus could include a vote on Bachus' bill to create a self-regulatory organization (SRO) for advisors, which falls under Section 914 of Dodd-Frank. Dan Barry, managing director of government relations and public policy for the Financial Planning Association (FPA), told AdvisorOne in mid-June that the bill could come up for a vote in July.
“The expectation is still that Chairman Bachus intends to move the bill forward through committee,” Barry told AdvisorOne. “The timing depends on how quickly they can address some of the issues that have been raised through amendments.”
Republican committee members say “supporters of Dodd-Frank sold it to the public as ‘tough Wall Street reform,’ but in reality its red tape hurts businesses and small town banks far from Wall Street that had nothing to do with the 2008 financial crisis.”
Two hearings to examine Dodd-Frank’s impact will be held this week. One by the Capital Markets Subcommittee on Tuesday entitled “The Impact of Dodd-Frank on Customers, Credit and Job Creators.” The other, to be held on Wednesday by the Financial Institutions and Consumer Credit Subcommittee, is entitled “The Impact of Dodd-Frank’s Home Mortgage Reforms: Consumer and Market Perspectives.”
The law firm Dechert said that as of July 2, a total of 221 Dodd-Frank rulemaking requirement deadlines have passed. Of these 221 passed deadlines, 140 (63%) have been missed and 81 (37%) have been met with finalized rules.
In addition, 119 (29.9%) of the 398 total required rulemakings have been finalized, while 142 (35.7%) rulemaking requirements have not yet been proposed.