As market participants prepare to comply with upcoming Dodd-Frank deadlines, 10 key regulatory actions are set to occur in 2013.
The FSOC is set to identify particular non-bank companies as “systemically important financial institutions,” deemed “too-big-to-fail,” that will be subject to increased oversight from the Federal Reserve, Real Clear Policy reports.
Though some of Dodd-Frank’s rules on over-the-counter derivatives have already taken effect, new regulations in the coming year will make it difficult for public utilities, farmers and firms to protect themselves from a number of business risks.
The Volcker Rule has remained stalled in Congress, but as market participants adjust their business activities to conform to the rule, firms that deal in certain financial products could find it more difficult to find a counterparty.
Additionally, the CFTC is in the process of appealing the overturning of its position limits rule. Former CFTC commissioner Michael Dunn warned that the rule “may actually lead to higher prices for the commodities we consume on a daily basis,” according to Real Clear Policy.
Within the next year, the director of the Office of Financial Research will likely be confirmed. Dodd-Frank allows the OFR director a large budget, an indication that the office could expand its information activities.
The FDIC will also likely issue its report on insurance regulation modernization. The agency’s recommendations in the report, if implemented, could change the way insurance is regulated in the U.S., Real Clear Policy reports.
The SEC may also move forward on a rule that would implement a code of conduct for investment advisors and broker-dealers for their relationship with customers, which could restrict investor access to professionals in the financial services industry, increase investor fees and reduce the amount of services available to investors.
Additionally, the SEC will finalize rules governing municipal advisors. The agency’s interpretation could affect a wide range of individuals, including nonprofit board members and low-level bank employees, that will be subject to heightened regulation, according to Real Clear Policy.