RiskTech Forum

AxiomSL: Spotlighting the Dodd-Frank Act, Financial CHOICE Act, and the SEC Modernization Rules

Posted: 1 October 2017  |  Source: AxiomSL


As a world leader in regulatory and risk reporting to financial institutions, AxiomSL is often asked to clarify regulatory and compliance issues sometimes too opaque to be clearly understood.

That’s the situation in which many asset management companies have found themselves related to the regulatory uncertainty clouding the U.S. investment industry.

As a complimentary service, we are issuing a series of “In the Know” primers to help explain in the plainest possible language what you need to know to successfully navigate this often-confusing environment. We hope you find this beneficial.

This “In the Know” spotlights the Dodd-Frank Act, Financial CHOICE Act, and the SEC Modernization Rules.

What We Understand

New chairmen have been appointed to the SEC and CFTC, and they have recently disclosed their agendas for their five-year terms. The touchstone of their shared mandate is to protect investors, maintain orderly markets and facilitate capital formation. Expect a review and possible revision of every rule enacted by the prior administration, an increase in targeted enforcement, and enhanced coordination of regulatory agencies in the pursuit of common regulatory mandates, including cybercrime, money laundering, bid-rigging and insider trading.

In the Spotlight

Dodd-Frank Act
Largely finalized and implemented, this Act is under scrutiny for substantial amendment by Congress. Sections of Title VII, regulating the OTC derivatives business, remains to be agreed upon and finalized between the SEC and CFTC.

How this Could Impact You

Financial CHOICE Act
Passed by the House and under review by the Senate, this legislation seeks to substantially rewrite the existing Dodd Frank Financial Services and Consumer Protection Act of 2010.

How this Could Impact You

SEC Modernization Rules
Adopted in October 2016 with the intent to modernize and increase the transparency of investment company reporting to better monitor and assess risk at a fund-specific level, manage counterparty risk, reduce liquidity risk and generally reduce systemic risk in the fund industry.

How this Could Impact You

How to Remain Compliant