After The Financial Implosion, Executive Enacted Laws To Regulate The Banking Industry
One way or another, the Dodd Frank Act changes the connotation of accredited investors, introduces new legislation of the working of hedge funds, requires that all of the CEO's of public firms report about the pay ratios and other compensation schemes of their staff, gives away incentives to promote banking among medium and lower income bracket folk and imposes rules that ensure that credit is available to all parts of the public.
The Dodd Frank Act comprises of 16 titles and as its aim states that: "To popularize the financial stability of the US by improving accountability and transparency in the monetary system, to end "too enormous to fail", to give protection to the American taxpayer by ending bailouts, to guard consumers from violent fiscal services practices, and for other needs of helping folk thru doing their part inreporting fraud".
The practical aspects of the Dodd Frank Act are too huge to be discussed here. One of the changes it has made is that previously investment counsellors who had no more than 15 clients in the period of the last 12 months did not need to report to the SEC and also did not have any reason to hold itself out to the public.
This particular Act has ensured that this exemption is not made anymore and makes lots of non-public equity firms, hedge fund dealers and investment advisers to be open for checks by the SEC. Another thing that's changed with this Act is that certain non banking monetary establishments will now be under management by the Government to the same degree as an ordinary banking institution.
The Dodd Frank Act has really changed the way that the fiscal institutions of America run. It has made both private and public fiscal institutions open for perusal. All this has been done with the purpose of ensuring better financial stability of the country.
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