Red Tape Rollback | Office of Rep. Todd Rokita

Dodd Frank and Financial Regulation

The Dodd-Frank Wall Street Reform and Consumer Protection Act is an overly burdensome part of our regulatory state. Regulations issued from Dodd-Frank already numbers over 14,000 pages with more regulations still to be written. U.S. Rep. Rokita continues to receive many complaints from Hoosiers regarding the Dodd-Frank regulatory framework. Red Tape Rollback will aggressively pursue ways to ensure that Dodd-Frank maintains its intended goal to promote financial stability and not become a system that makes it harder for Hoosiers to save, borrow, invest, and purchase homes. You can help by reporting new Dodd-Frank regulations that impact your business.


SEC Regulatory Accountability

The Securities Exchange Commission (SEC) is tasked with regulating the financial markets. To simplify SEC rules, the House passed H.R. 1062, the SEC Regulatory Accountability Act. This bill would require the SEC to conduct robust cost-benefit analyses on each new rule to ensure that its costs do not outweigh its benefits. This legislation would ensure new and existing regulations are accessible, consistent, written in plain language, and easy to understand.

National Association of Registered Agents and Brokers Reform Act

Insurance agents and brokers practicing in multiple states must complete separate applications for each state they do business in. U.S. Rep. Rokita joined 396 of his House colleaguesin voting for H.R. 1155, the National Association of Registered Agents and Brokers Reform Act. This bill streamlines the process by allowing licensed brokers to practice in every state once the broker has received the approval of the National Association of Registered Agents and Brokers.

Ensuring Uniformity of Financial Regulations

Swap trades are commonly used by investment brokers in order to protect their clients' investments. Those swaps are regulated by two government agencies, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commissions (CFTC). To streamline the regulatory process, the House passed H.R. 1256, the Swap Jurisdiction Certainty Act. This legislation requires the SEC and the CFTC coordinate their regulatory rulemaking to ensure that regulations are consistent, fair, and easy to understand.

Swaps Regulatory Improvement Act

In the wake of the 2008 financial crisis, Dodd-Frank attempted to protect bank stability by "pushing out" certain types of trades into non- bank institutions. The result was higher transaction costs leading to an inability for everyday traders to utilize the common investment product known as a swap. In response, the House passed H.R. 992, the Swaps Regulatory Improvement Act, to force out of banks only those types of investment products that led to the 2008 crisis. As a result, Hoosiers can still have faith in their financial institutions while still having access to affordable investment products.

Retail Investor Protection Act

All individuals who receive investment advice from employers or from private brokers are protected by a legal standard of care known as a "fiduciary duty." Under Dodd-Frank, the Securities and Exchange Commission is required to explore the merits of applying one standard fiduciary duty to all brokers and dealers of investment products. However, the Department of Labor has also explored the possibility of defining a fiduciary standard under a different law, the Employee Retirement Income Security Act (ERISA). In order to prevent these bureaucratic agencies from creating conflicting standards, the House passed H.R. 2374, the Retail Investor Protection Act, which will prevent the Department of Labor from issuing any fiduciary standard until at least 60 days after the SEC does so.