Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), signed into law on July 21, 2010, mandated sweeping changes in the regulation of the US over-the-counter (OTC) derivatives market. Pursuant to the Dodd-Frank Act, the Commodity Futures Trading Commission (CFTC) has jurisdiction to regulate the over-the-counter derivatives markets. Dodd-Frank requirements vary depending upon the transaction and the provider.
Providers registered with the CFTC as a Swap Dealer have increased Dodd-Frank Compliance requirements versus those of providers registered as Insured Depository Institutions. Charlie Jacobs, leads Kensington’s Dodd-Frank Compliance Advisory practice and works with clients and their counsel to understand and execute any required Dodd-Frank compliance in connection with the execution, amendment and/or termination of derivative transactions.
Basic components of Dodd-Frank Compliance with an Insured Depository Institution (IDI):
Many IDI’s will have a stand-alone Risk Disclosure and Acknowledgement that they will require clients to execute prior to entering into a derivative transaction, outlining some of the features and risks of the proposed transaction.
Contact Charlie Jacobs for additional information on Dodd-Frank compliance and IRMA/QIR services. Kensington provides additional support services including valuation & monitoring, reinvestments, and derivative education.