Financial Regulatory Reform Resource Center
On July 21, 2010, President Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Act). The Act will significantly reshape financial regulation in the United States, create new regulators, regulate new markets, bring new firms under regulatory oversight, and provide new rulemaking and enforcement powers to regulators.
The new laws are meant to protect investors and consumers and apply to banks, mortgage banks, broker-dealers, hedge funds, private equity funds and government-sponsored entities. Although central elements of the Act focus on regulating the financial services sector, it also includes provisions affecting every public company, including enhanced SEC enforcement authority and additional corporate governance requirements.
Regardless of its specific sector, each financial services firm will potentially face a different set of implications based on its unique business mix and organizational structure. The new regulations may mean significant changes in legal entity structures and business lines, corporate governance and organization, operations and IT systems, risk management and internal control frameworks, tax planning, regulatory and public disclosures, and legal and compliance demands.
Ensure that your organization is properly preparing for the impact of reform and address the following questions:
- What is the process for registering funds and how are they preparing for SEC examinations?
- Is the fund industry ready for mandatory registration and new SEC requirements?
- Will you be ready for new OTC derivative trading methods and requirements?
- Will you be ready for financial reform restrictions on derivative and proprietary trading?
- How will this new legislation affect the banking, securities, insurance and asset management industries?
- What scope of information will be collected from hedge funds, private equity funds and venture capital funds?
- What steps can firms take now to prepare, adapt and successfully navigate through this evolving regulatory landscape?
- What impact will the new regulation have on capital and liquidity?
- What cost-effective compliance strategies should be developed?
- How will financial services firms’ legal structures change? And what will be the implications of those changes?
- How will the legislation affect the way a board functions?
To learn more about how financial reform will affect your firm, contact:
Jack Katz
National Managing Partner
Financial Services
E Jack.Katz@gt.com
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Private market for mortgage-backed securities shows signs of life
Over the past few years, private investors have lost their collective appetite for most mortgage-backed securities, particularly those in the nonconforming or “jumbo” category (those too large to be guaranteed or secured by a government entity, such as Fannie Mae or Freddie Mac). In April 2010, Redwood Trust, a California-based REIT, sponsored a $238 million residential prime jumbo mortgage securitization — the first deal of its kind since August 2008 — and breathed new life into a dormant market. Learn more about this transaction and how it may shape future securitizations.
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Troubled bank opportunities: What you need to know about FDIC-assisted transactions
The economic downturn and banking crisis have spurred a significant increase in the number of bank failures. Many of these troubled banks are being acquired by healthy banks through FDIC-facilitated acquisitions. For qualified banks, acquisitions of these failed banks present opportunities to grow aggressively. Updated March 8, 2010, this white paper, Troubled bank opportunities:What you need to know about FDIC-assisted transactions, explores the accounting, tax, operational, legal, regulatory and other implications of these complex transactions.
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Illiquid assets: Improving transparency for investors
Many hedge fund investors suffered significant losses in the downturn and consequently want a closer view of portfolio assets and valuation process when it comes to illiquid assets. Because of the lack of observable transaction prices, illiquid assets are often valued using models that may include significant management judgment. This issue explores how funds that invest in illiquid assets can demonstrate transparency and a commitment to clear valuation policies to investors.
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SEC updates Custody Rule requirements
The SEC adopted the Final Rule, Custody of Funds or Securities of Clients by Investment Advisers, on Dec. 16, 2009. Effective March 12, 2010, investment advisers must comply with amendments made related to Form ADV and new instructions to Item 9 of that form, as well as undergo surprise examinations. This Financial Bulletin explains these requirements and what investment advisers can expect.
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Regulatory scorecard: Game-changing issues for broker-dealers
A number of pending regulations, such as Sen. Chris Dodd’s financial reform bill, have been proposed to tighten the reins on Wall Street and as a result, broker-dealers face a changing playing field. Navigating these numerous new rules can be challenging. From cost-basis reporting requirements to potential regulatory reform, this issue explores the major issues that will affect broker-dealers, and what they can expect in the months ahead.
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Accounting for FDIC-assisted transactions: Acquisition of loans, application of ASC 310-30 and other issues
For qualified institutions, FDIC-assisted acquisitions of failed banks present opportunities to grow aggressively. However, accounting for these transactions can be quite complex. Grant Thornton LLP’s new white paper, released on June 1, tackles the challenges in applying GAAP purchase accounting to the acquisition of loans, including troubled loans, as well as pitfalls for acquirers to avoid and best practices for a smooth acquisition.
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What health care legislation means for financial institutions
The latest developments in health care legislation don’t just affect hospitals. Financial institutions that provide certain services to health care organizations must also comply with changes to the Health Insurance Portability and Accountability Act (HIPAA). HIPAA compliance requirements continue to expand substantially in breadth and scope through various pieces of legislation enacted in recent weeks and months. Learn how banks and other financial institutions can take a number of critical, affordable steps to help ensure compliance.
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Executive compensation provisions for TARP recipients under the American Recovery and Reinvestment Act of 2009
Executive compensation is an increasingly hot-button issue in the current environment. New legislative developments address the public's concern that Troubled Asset Relief Program (TARP) recipients should be prevented from using rescue funds for excessive executive pay. The American Recovery and Reinvestment Act of 2009 (ARRA) places additional rules on executive compensation that apply both prospectively and retroactively. Learn how to navigate these challenging rules.
Webcast: Regulatory update for broker-dealers
Learn about the latest industry trends and regulatory issues facing broker-dealers on this webcast playback.
Podcast: Exploring FDIC-assisted transactions
This podcast provides insights into how the FDIC is working with healthy banks, and other strategic buyers, to acquire failed banks.
Contact a member of our Financial Services practice
If you wish to submit an RFP or have questions about our services, e-mail us at FinancialServices@gt.com or call 877.835.1723.
