The much discussed Dodd-Frank legislation is expected to have broad and deep implications for all sectors of the U.S. financial industry marketplace, including long-term consequences for the equipment leasing and finance industry and for its leasing counsel, reported Paul Bent, senior managing director of The Alta Group.

Writing for LJN’s Equipment Leasing Newsletter, he said one of several new federal agencies created under this legislation (which became effective in July 2010) is the Consumer Financial Protection Bureau (CFPB), referred to in the new law as “the Bureau.” It has authority to regulate extensions of credit, deposit-taking, funds transmission, check cashing, data processing and certain kinds of financial advice. The Bureau is also authorized to require financial companies to gather and report detailed information on transactions they approve and fund. The scope of the Bureau’s regulatory authority is very broad and may overlap with traditional equipment leasing and financing activities, Bent wrote in the article, published in the September issue of the Equipment Leasing Newsletter.

In what is the first of a two-part in a series of articles on this legislation, Bent said there are other significant provisions likely to affect our industry , including provisions for increased capital requirements, retention of securitization risk, and greater regulation of hedge fund advisors, financial swaps and many other activities of interest to leasing companies and their counsel.

Paul Bent, the leader of The Alta Group’s Legal Support Services Practice, is also on the board of the LJN Equipment Leasing Newsletter, whose primary readership is legal professionals engaged in the equipment leasing industry.

For Paul’s full story, please click here:

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Read Part 2 of the article series.

Article Source: LJN Equipment Leasing Newsletter