Wall Street Reform Bill Will Have Unique Impact on Small Companies

On July 21, 2010, President Obama signed the final version of the Dodd-Frank Wall Street Reform and Consumer Protection Act into law. This sweeping legislation will have a tremendous impact on institutions of all sizes and industries, but not all companies will be impacted equally. It is important for those who may be affected to understand what portions of the Act will apply to them, and which will not; in particular, not all small banks, holding companies, insurers, and issuers will be subject to all of the new regulations. As these companies prepare for the regulatory changes that will follow the implementation of the Act, close attention should be paid to provisions which directly impact smaller institutions.

The Act affects small companies differently from their larger counterparts in at least three distinct ways. First, it specifically exempts some groups of companies from certain requirements of the Act. Second, it directs federal regulatory agencies to consider how new rulemaking will affect smaller institutions, and provides greater discretion in the choice to exempt small institutions from their requirements. Finally, it mandates that studies be conducted to identify the unique burdens imposed on these institutions by new regulation.

Please click on the Attachment: link to view or download the entire article