Send a Tweet
Most Popular Choices
Share on Facebook 7 Share on Twitter 1 Printer Friendly Page More Sharing
OpEdNews Op Eds    H3'ed 7/25/10

Investment Management Advisor on Financial Reform Bill: "Regulators Will Have Strong, Enhanced Enforcement Powers"

By       (Page 1 of 4 pages)   2 comments
Follow Me on Twitter     Message Kevin Gosztola
Become a Fan
  (62 fans)

Copyrighted Image? DMCA

(Image: Terrance Heath/, Adapted:SEIU International, Tracy O, and harrykeely) by TerranceDC

President Obama signed the Dodd-Frank Act otherwise known as the financial reform bill into law on July 21st. The bill, characterized by Obama as "the most sweeping financial reform legislation since the Great Depression," supposedly created the "strongest consumer financial protections in history."

The legislation created a Bureau of Consumer Financial Protection, imposed regulations on "risky financial instruments," and put in place regulations on credit and debit card fees.

Skeptical of the legislation, I spoke with Mark Perlow, an investment management advisor who works for an investment management practice in San Francisco. Perlow's practice focuses on fund managers (e.g mutual fund managers, hedge fund managers and other investment advisers) and represents a lot of financial firms.

For those wondering, a hedge fund, as defined by Perlow, is "a pool of capital that under Securities Exchange Commission (SEC) rules can't market itself publicly or to investors below a certain level of personal net worth as a way of essentially making sure that only sophisticated investors that can afford to take a lot of risks can invest them. Hedge funds are essentially vehicles that exist to follow investment strategies that mutual funds are not allowed to follow because of SEC rules."

As the financial reform legislation developed and changed in Congress, Perlow followed the evolution. He tracked the bill on behalf of his clients and read much of the bill so that he would be able to advise his clients on how to comply with the new legislation.

"The bill directly affects most of my clients," said Perlow. "I've spent most of the past month following the legislation closely and helping to prepare a series of summaries of the legislation for our clients that are posted on my firm's websites."

The provision that will have the most impact or effect on what Perlow and his clients is "the provision that regulates hedge fund managers" and "private equity managers." According to Perlow, that section will directly affect his client base. And, so will "the section that regulates the derivatives market" because many of his clients "routinely use derivatives as an investment tool."

"The derivatives reform provisions are a complete overhaul of the U.S. derivatives market. It's really a dramatic and comprehensive set of reforms," explained Perlow. "So anybody who deals in the derivatives market" is going to have to understand how those provisions work."

Next Page  1  |  2  |  3  |  4

(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).

Rate It | View Ratings

Kevin Gosztola Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

Kevin Gosztola is managing editor of Shadowproof Press. He also produces and co-hosts the weekly podcast, "Unauthorized Disclosure." He was an editor for
Go To Commenting
The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.
Follow Me on Twitter     Writers Guidelines

Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Support OpEdNews

OpEdNews depends upon can't survive without your help.

If you value this article and the work of OpEdNews, please either Donate or Purchase a premium membership.

If you've enjoyed this, sign up for our daily or weekly newsletter to get lots of great progressive content.
Daily Weekly     OpEd News Newsletter
   (Opens new browser window)

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

We Do Not Consent to Warrantless "Porno-Scanning" in Airports

Do They Put Lipstick on Pigs at the Funny Farm?

How Private Prison Corporations Hope Arizona's SB1070 Will Lead to Internment Camps for Illegals

Why the Battle Against TSA Groping and Body Scanners is Justified

Give Obama a Chance to Do What?

To View Comments or Join the Conversation:

Tell A Friend