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CCH issues White Paper on draft of financial, securities reform

Nov 12, 2009

CCH Principal Securities Law Analyst Jim Hamilton, JD, and CCH Analyst Richard Roth, JD, have authored a new white paper, Senate Banking Committee Releases Draft Legislation: Restoring American Financial Stability Act of 2009. This is the latest version of legislation aimed at fundamental regulatory reform of the U.S. financial and securities markets. CCH is part of Wolters Kluwer Law & Business, a leading provider of research information and software solutions in key specialty areas for legal and business professionals ( The authors examine each aspect of the proposal in depth, from creation of a systemic risk regulator and regulation of OTC derivatives to creation of a single federal bank regulator, a Consumer Financial Protection Agency (CFPA) and new rules on corporate governance and executive compensation. “If enacted, this legislation would provide a sweeping overhaul of U.S. financial services and markets,” Hamilton said. “It addresses a wide range of securities, corporate governance and banking issues, realigns regulatory agencies and would subject entities such as credit rating agencies and derivatives to a level of scrutiny they have never known before.” In the white paper, the authors examine each aspect of the comprehensive proposal, including: creation of a systemic risk regulator; regulation of OTC derivatives; registration of hedge fund advisors; creation of a Consumer Financial Protection Agency; self-funding for the SEC; oversight of auditors of broker-dealers by the PCAOB; reordering of federal-state regulation of investment advisers; SEC authority to bar mandatory arbitration of disputes between investors and broker-dealers; new rules on corporate governance and executive compensation; increased regulation of credit rating agencies and creation of an Office of Credit Ratings at the SEC; creation of a single federal bank regulator; a new resolution procedure for managing failure of large non-depository financial institutions; creation of a private right of action against secondary actors who aid and abet securities fraud; raising and indexing for inflation the financial threshold for an accredited investor under the Securities Act; and international aspects of financial regulation. Jim Hamilton is a prolific blogger on current issues in the securities field. Jim Hamilton’s World of Securities Regulation can be found at He has written and spoken extensively on federal securities law and has been cited as an authority by a federal court. His analysis of the Sarbanes-Oxley Act, the Sarbanes-Oxley Manual: A Handbook for the Act and SEC Rules, is considered a definitive explanation of the Act. In addition to his many books and articles, Hamilton serves as a leading contributor to the industry-standard publication, the CCH Federal Securities Law Reporter. This latest white paper from Hamilton is one of a series he has authored. Richard Roth has been analyzing and writing about federal banking laws and regulations for more than 10 years, after nearly 15 years in the active practice of law. Roth contributes his editorial expertise to the CCH Federal Banking Law Reporter, CCH Bank Compliance Guide and Bank Digest. Roth was co-author of CCH Law and Explanation books on Financial Services Modernization and the Bankruptcy Abuse Prevention and Consumer Protection Act. For more information, visit
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Nov 12, 2009
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