The World of Dodd-Frank | Updates and How to Prepare

Post by admin on February 8, 2013

Prior to the election a few months ago, it seemed as if everything that had been developing in the world of Dodd-Frank was put on hold. Now, with the election and inauguration behind us and our country anticipating the next four years, those in the financial industry are realizing that this also means another four years of Dodd-Frank.


The last few years have meant several lawsuits, delayed deadlines and unending controversy surrounding the Dodd-Frank act and the regulations that loom. Some rulemaking requirements have been set while many others have missed deadlines or have yet to  even be decided. While many government agencies have already adopted Dodd-Frank and are reportedly more or less happy with the outcome,  other organizations remain far less certain. about the switch.

Dodd-Frank in the Present

With everything that deals with this legislation up in the air, it makes it very difficult to stay up- to-date on which rules are and are not going to be solidified. Looking for answers, I encountered the Davis Polk website that posts monthly updates about Dodd-Frank. Here is a quoted summary of their latest update, released on February 1, 2013:

  • In the past month, a total of 42 Dodd-Frank rulemaking requirement deadlines passed and 12 rulemaking requirements were met with finalized rules. No new rules that would meet rulemaking requirements were proposed.
  • As of February 1, 2013, a total of 279 Dodd-Frank rulemaking requirement deadlines have passed.
  • This is 70.1% of the 398 total rulemaking requirements, and 99.6% of the 280 rulemaking requirements with specified deadlines.
  • Of these 279 passed deadlines, 176 (63.1%) have been missed and 103 (36.9%) have been met with finalized rules.
  • Regulators have not yet released proposals for 65 of the 176 missed rules.
  • Of the 398 total rulemaking requirements, 148 (37.2%) have been met with finalized rules and rules have been proposed that would meet 121 (30.4%) more. Rules have not yet been proposed to meet 129 (32.4%) rulemaking requirements.

For those of you more visually inclined, they also offer plenty of graphs depicting this data. I would encourage you to browse their other information on Dodd-Frank. It is very comprehensive and easy to follow.

For a very simplified representation of Dodd-Frank as a whole, check out this helpful and mildly humorous infographic by Businessweek.

In Short

Whether pleased or wary of the pending Dodd-Frank deadlines, what is certain about the regulatory law is that it is moving forward. I think an article titled Bipartisan Think Tank to Deliver Congress Blueprint for Dodd-Frank Update by sums it up well:

“The hulking bill was an imperfect first attempt to rewrite the rules of the road for Wall Street. Sen. Mark Warner (D-Va.), a member of the Banking Committee who was a key figure in the drafting of the law, acknowledged as much in remarks at the launch event for the BPC initiative. ‘I think looking back historically at any major piece of legislation, regardless of which party’s in power, Congress never gets it right when you’re looking at massive reform legislation the first time through,’ Warner said. ‘I think history is always replete with the notion that you directionally head into an area and then you come back two years, three years hence and do a corrections legislation’…The members of the BPC initiative start with the premise that Dodd-Frank is here to stay, focusing on opportunities to improve the law rather than entertaining the idea of a wholesale repeal.”

How to Prepare

The key phrase at the end of the quote above is that Dodd-Frank is “here to stay”. While missed deadlines and lawsuits continue to delay the full implementation of Dodd-Frank, businesses will inevitably need to prepare for these regulations to be enforced when the legislation passes.

If you are wondering how to deal with Dodd-Frank compliance, our advice is to make sure your business is using a C/ETRM system that is prepared for these new regulations. Pioneer Solutions’ ComplianceTracker helps businesses manage compliance and regulatory issues, as well as all other business processes. making it a comprehensive business management system. ComplianceTracker manages compliance requirements through a leading-edge, integrated platform that is ideal for mitigating financial and regulatory risks.

About Pioneer Solutions

Pioneer Solutions is a global software provider of next generation Commodities and Energy Trading and Risk Management (C/ETRM) Environmental Management Information Systems (EMIS) & Enterprise Compliance Solutions. Pioneer’s comprehensive suite of products are designed specifically for utility and energy companies and offer a single seamlessly integrated platform that can handle all commodity types, risk exposures and compliance needs.

Offering the latest in business processing capability, Pioneer’s products offer the user a configurable environment that allows for customizable templates for workflow and user-defined custom formula entry. Serving some of the largest utilities and energy companies across the globe, Pioneer’s flexible solutions are designed for rapid deployment and easily adapt to clients’ unique business processes, model complex trading scenarios and automate business processes. 


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