The implementation of Dodd-Frank, the Act has entered the third year phase since its enactment as an act in the US government. From the time the law was passed to an act, various agencies have formulated numerous rules and requirements to match the requirements of the Dodd- Frank Act. For example, the Federal Bank agencies, Security Agencies, Commodity Futures Trading Commission. In addition to the newly set rules, a number of other rule have been tabled for public participation, and the proposal of others has not taken effect. On the other hand, Sarbanes-Oxley Act of 2002, in characterized by reforms in the business sector of America that has impacted significantly on the business for a long time. The main objective of these reforms include an increase in responsibilities within the corporate world, encounter the financial fraud and reveal the misuse of finances. It is therefore significant for the two acts to be flexible and change base upon time and circumstances due to the following factors. Despite the fact that the acts have been great benefits, there are a number of challenges that they face, facing to apply flexibility in order to survive. For example, the Congress body differs in views of the two acts, that is to say, some support the out righting of the repeal of the acts, and their revisions, while other advocates to the acts to remain as they are. This is brought by the difference in ideologies, for example, the Republicans controlling the House while the Democrats managing the Senate (American Petroleum Institute, 2013). Judicial scrutiny is another reason for SOX and Dodd- Frank acts to be flexible. This describes majorly the private sector that constantly opposes the doctrine of the two acts, thus leading to the re-examination of the laid rule of the acts in order to favor stakeholders from both the public and the private sector. For example, Dodd- Frank was successfully challenged by some business organizations and the US chamber of commerce in 2013, thus forcing the act to establish new rule concerning the extraction of the resource by different stakeholder and the governmental fee on the same (American Petroleum Institute, 2013). The analysis of cost- benefit the state as required by Dodd- Frank Act also calls for the act to be flexible due to pressure on the participants in the market due to an increase in the regulatory costs (Adam, 2015).
Changing of Dodd-Frank Act and the Sarbanes-Oxley Act based upon the times or circumstances is of great value to both the government, foreigners and the business world and these can be explained as follows. The compensation of committees in that, the issuers will independently determine the compensation criteria under the set rules that are formulated by different media of exchange. For example, independence under Dodd- Frank act requires the committee to be composed of independent directors. Another value is the new disclosure of requirements. For example, it is important that the acts put to public knowledge the requirements related to the rules and regulation in order to avoid the concept of ignorance. It is requirements of Dodd- Frank Act to release information reflect the relationship between compensation and how the finances performed (Todd McCafferty, 2010). In conclusion, the Dodd- Frank Act and the Sarbanes-Oxley Act face opposition for both internal and external (the international world) that forces them to adapt to flexibility and change based on time and circumstance. This is because time the world is a changing sphere in sectors of life, in that, what is today may not present the same case tomorrow. And as the world changes in every perspective, so does circumstances, and therefore, for the two acts to operate sufficiently and bring values, they need to be flexible and change with time and circumstances, since the world has also become a global village that change affects everyone and everything.
American Petroleum Institute, et al. v. Securities and Exchange Commission, US District Court
for the District of Columbia, 1:12-cv-01668 (2 July 2013).
Todd McCafferty, et al. (2010). Dodd-Frank Wall Street Reform and Consumer Protection Act:
Impact on Public Companies
Adam Hartang, (2015). Regulations Work: Benefits Of SOX And Dodd- Frank: business growth
& overcoming organizational obstacles. Opinions expressed by Forbes Contributors are their own.
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