Dodd-Frank Act

Regulating the US financial markets

The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) was introduced in 2010 to prevent another financial crash like the one in 2008 and to promote the financial stability of the United States.

Considered the most wide-ranging piece of financial regulation in the US since the Great Depression, Dodd-Frank introduced many new regulatory requirements for financial firms. By doing so, it sought to improve accountability and transparency, end the too big to fail mentality, protect the American taxpayer by ending bailouts, and safeguard consumers from abusive financial services practices, amongst other things. 

To achieve this, the Act established new government agencies to oversee parts of the US financial system, including the Financial Stability Oversight Council, Consumer Financial Protection Bureau and SEC Office of Credit Ratings.

Impact of Dodd-Frank on the buy-side

The Dodd-Frank Act eliminated the SEC registration exemption of private advisors which was included in the Investment Advisors Act of 1940.

Many Private Equity Funds and Hedge Funds became classified as "Investment Advisors", had to register with the SEC or their state (by 2012), and became subject to SEC's record keeping and monitoring of electronic communications.

Ensuring compliance with Dodd-Frank continues to be a pressing issue for many firms

SteelEye reduces the complexity and cost of financial compliance and provides a range of regulatory tools that assist firms in complying with record keeping and oversight obligations. Book a demo to learn more about how SteelEye can help you Comply Smarter.