By the time you read this, we will have commemorated the
first anniversary of the passage of the Dodd-Frank Act. Any
significant milestone brings with it the opportunity for
evaluation. The Act required that approximately 380 rules be
written, of which 28 have been finalised. Quite a number of
rulemaking deadlines have been missed.
The rules that have been finalised relate to the
whistleblower provisions and to various securitization-related
issues. However, many of the biggest questions remain
Market participants anxiously await additional guidance
regarding systemic designation. The banking agencies have said
that this summer they anticipate seeking comments on various
matters related to regulatory capital. The comment periods for
many proposed rules were deemed too brief to allow for adequate
consideration and discussion. A number of agencies have
extended the comment periods, or re-proposed rules.
Many agencies have acknowledged that a phased, or staged,
implementation process is required given the possibility for
disruption. This is especially true in the case of the
regulations affecting OTC derivatives. In the meantime, as
deadlines are extended out, and as the debate regarding
competitiveness issues and the need for greater harmonisation
gains strength, legislators are proposing measures that would
roll back certain reforms effected by the Act.
With elections coming up, and with international reform
measures dragging along, one cannot help but wonder whether the
Pandora's box of regulatory reform will be reopened.
Anna Pinedo and James Tanenbaum