Yearly Archives: 2017

On June 8, the House of Representatives passed a revised version of the Financial CHOICE Act (the “Act,” available here) in a 233-186 vote. The Act would repeal or modify significant portions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”) and addresses a wide range of other financial regulations. This bill is the second version of a reform bill that was introduced last year by committee Chairman Jeb Hensarling (R-Texas). In many respects, the Act echoes priorities raised in President Trump’s executive order signed on February 3 (see our client alert here) setting forth “Core Principles” intended to guide the regulation of the U.S. financial system and in his presidential memoranda calling for review of certain features of the Dodd-Frank Act (see our client alert here).

A variety of interest groups, including the Council of Institutional Investors, have expressed strong opposition to the bill, and the chances of the Senate passing the bill in its current form appear low. Nevertheless, the bill will serve as an important reference point in the negotiation of legislation able to attract both House and Senate support. Any final legislation would likely include provisions designed to encourage capital markets activities in the United States and could also address certain provisions of the Dodd-Frank Act, such as those relating to pay ratio and conflict mineral disclosure, that have been the subject of substantial controversy and litigation.

Key provisions of the Act are summarized below. READ MORE »