R8 Dodd-Frank Act of 2010

Question 1

What are the primary tasks of the Financial Stability Oversight Council? FSOC

Answer 1

1. Identify risks to US financial stability
2. Eliminating expectations that the government will shield entities from losses, and
3. Responding to threats to the stability of the US financial system

Question 2

Under the Secretary of the Treasury’s Orderly Liquidation Authority granted under Title II of Dodd-Frank what types of institutions may the Secretary place into receivership?

Answer 2

Financial companies not previously covered by FDIC and SIPC, including insurance companies and non-bank financial institutions

The primarily finding that the FDIC must determine is that liquidation is necessary for US financial stability

Question 3

What types of securities offerings are regulated by the Private Fund Investment Advisers Registration Act of 2010?

Answer 3

Regulates hedge funds and other similar investment intermediaries and requires such intermediaries to make reports to federal agencies

Question 4

What investments are limited under the Volker Rule of Title VI of the Dodd-Frank Act?

Answer 4

Limits trading or investing by any banking entity in a hedge fund or private equity if the trading results in more than 3% ownership of the find. The aim of this rile is to limit the amount of speculative investments on large banks’ balance sheets

Question 5

Under Title IX of Dodd-Frank, the Investor Protection and Securities Reform Act of 2010, what standard must broker-dealer meet when dispensing investment advice to client?

Answer 5

SEC- registered broker-dealers and investment advisors must make recommendations suitable to the needs of their customers and in their customer’s best interest