Corporate Governance

Dodd-Frank and Mutual Funds: Alternative Approaches to Systemic Risk

By Harvard Law School Program on Corporate Governance

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 byfederal 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.

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Full post as published by The Harvard Law School Corporate Governance Blog on February 10, 2011 (boomark / email).