This post comes to us from David M. Geffen, Counsel at Dechert LLP who specializes in working with investment companies and their investment advisers. This post is based on a article by Mr. Geffen and Joseph R. Fleming that first appeared in the Bloomberg Law Reports.
The Credit Crisis and Reform
Largely in response to the recent credit crisis (Credit Crisis), the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) was enacted in July 2010. The Dodd-Frank Act is an historic and wide-ranging piece of legislation and constitutes the most significant legislative change in the regulation and supervision of financial institutions since the Great Depression.
Registered investment companies and registered investment advisers (also referred to herein as “funds” and “advisers,” respectively) were minor players in the Credit Crisis. [1] Nevertheless, the Dodd-Frank Act contains several provisions, rulemaking directives, and required studies that could impact funds and their advisers. The Dodd-Frank Act defers many of its effects to future studies and regulations by federal regulators, which are directed under the Dodd-Frank Act to promulgate a variety of regulations in the six to 18 months following the Dodd-Frank Act’s enactment. [2] These studies and regulations have the potential to impact funds and their advisers significantly.
