Dodd-Frank Act and Minimizing the Cost of Compliance

Michael Keeley, Partner,
Hunton & Williams LLP

• Capital implications of Dodd Frank and Basel III
• Avoiding regulatory meltdown
  • Fair Lending
  • Repeal of Reg Q.
  • Remittance Rules
• CFPB

Brian R. Iverson, Attorney,
Brian R. Iverson, Attorney,

Introduction / Overview

-Dodd-Frank is over 2,300 pages and requires hundreds of rules

-Focus on provisions most significant for bank compliance

Whistleblower Provisions

-Overview of text (Sections 748 and 922)

-Overview of regulations

-Discussion of incentives and protections

-Compare to SOX whistleblower provisions

-Discuss Consumer Financial Protection Act whistleblower provisions (Section 1057)

-Comparison of SEC, CFTC and CFPB rules

-Prohibition on waiver and pre-dispute arbitration clauses

-Benefits and risks to financial institutions

-Effective compliance structure (incentives for reporting, investigation of reports, documentation of employment actions)

Living Wills

-Overview of text (Section 165(d))

-Policy considerations

-Federal Reserve Board and FDIC (holding companies and insured depository institutions)

-Deadlines for initial resolution plans

-Annual updates

-Periodic updates to address events with material effect on resolution plan

-Contents of resolution plans

-Regulatory review and scrutiny of resolution plans

Swaps Push-outs

-Overview of text (Section 716)

-Not an explicit ban, but practical ban based on limit to federal assistance

-Exceptions

-Statutory and regulatory definitions

-7/16/13 effective date with at least 2 year compliance period

-Compliance initiatives

Volcker Rule

-Overview of text (Section 619)

-Ban on proprietary trading and hedge and private equity fund ownership

-etailed and specific proposed rule

-Specific compliance program requirements in proposed rules

-Data collection and analysis requirements in proposed rules

-Statute has July 2012 effective date, with 7/21/14 compliance deadline

-Proposed rule is extremely complex and has been pending for months

-Near-term compliance initiatives based on statutory text

-Long-term compliance planning based on proposed rules

-Prepare to adapt based on regulatory developments

Diana Bergherr, Managing Director, Business Development Compliance,
DLA Compliance

• Alternative Arrangements
• Compliance and Ethics training
• Automation
• Reviews and audits

Larry Albin, Principal,
Deloitte Consulting LLP

Addressing specific requirements of Dodd Frank / lessons learned:

- Collateral management and clearing – emerging operating model and technology requirements

- Regulatory reporting – challenges in trade reporting and industry practices

- Living Wills and resolution planning –getting to compliance and recognizing business value

- How to organize and report on progress to regulators across initiatives