Federal Financial Regulation Includes Qualified Intermediaries

On July 21, 2010, President Obama signed comprehensive financial reform legislation known as the Dodd-Frank Wall Street Reform and Consumer Protection Act. Title X of the Act will create a new agency called the Bureau of Consumer Financial Protection, which has broad authority over providers of financial products and services for the protection of consumers. In particular, section 1079 of the Act provides for the Director of the Bureau to study and propose “regulations or otherwise establish a program to protect consumers who use exchange facilitators” primarily for personal, family, or household purposes. The recommendations are to be submitted to Congress within one year and any resulting regulations are to be proposed or protection programs implemented within two years.