July 2010

Financial Regulatory Reform Bill Clears Congress

From Journal of Accountancy.

The Senate on Thursday approved a major financial regulatory reform package that President Barack Obama is expected to quickly sign into law.

The Dodd-Frank Wall Street Reform and Consumer Protection Act, which was approved by the House on June 30 before narrowly clearing the Senate, will create new regulations for companies that extend credit to consumers, exempt small public companies from Sarbanes-Oxley section 404(b), make auditors of broker-dealers subject to PCAOB regulation and change registration requirements for investment advisers. The profession successfully advocated for CPAs to be carved out of the new Consumer Financial Protection Bureau for usual and customary activities.

Some highlights of the legislation that may be of particular interest to CPAs are:

• Financial Stability Oversight Council
• Consumer Financial Protection Bureau
• SOX section 404(b) exemption
• Auditors of broker-dealers
• Accounting standards
• Registered investment advisers
• Aiding and abetting securities fraud
• Advisers to private funds
• Executive compensation
• Chairman and CEO structure disclosure
• Office of Thrift Supervision (OTS)

Read full article.