SEC rulewriting delay causes key Dodd-Frank regulations to be more than a year past due

Bartlett Naylor

The April 15 deadline for many key Dodd-Frank regulations has passed, leaving many rules still unwritten and some areas of the financial market vulnerable almost two years after the rules were supposed to have been implemented.

The 2010 Dodd-Frank Act stipulated that many provisions of the financial overhaul should be implemented within nine months of the legislation’s passing — April 15, 2011. Delayed regulations include those from the Securities and Exchange Commission, particularly derivatives rules and rules regarding ratio of CEO to median employee compensation, as well as anti-corruption regulations, The Huffington Post reports.

Bartlett Naylor, a financial policy advocate for the consumer advocacy group Public Citizen, explained the importance of the timely implementation of the rules.

“Our financial industry has developed an ability to blow itself up very quickly, apparently unbeknownst to its regulators,” Naylor said, according to The Huffington Post. “It’s unclear when the next bomb will explode. But, I think defusing it sooner is certainly better.”

Some worry that the SEC is more preoccupied with requirements under the recently passed JOBS Act than the agency is with overdue Dodd-Frank rules, particularly anti-corruption regulations. One anti-corruption rule requires that U.S. companies involved with resource extraction report any payments made to foreign governments.

Activists from Oxfam America, a humanitarian group, stood outside of the SEC on Monday wearing suits and monkey masks to convey the importance of the anti-corruption rule and the message that “transparency in the oil, gas and mining industry is not monkey business,” The Huffington Post reports.

The SEC has estimated that the rule will likely be finalized by June, an estimate that Ian Gary, an Oxfam representative, thinks will be disregarded based on the past actions of the regulator.

“But, based upon the serial violations of promises in the past, we’re deeply concerned that the agency is not taking the congressional deadline seriously and has really drawn back from rulemaking in general,” Gary said, according to The Huffington Post.

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