The Dodd-Frank Act was enacted in 2010 to combat financial instabilities on Wall Street and to reform U.S. financial regulatory standards. This law came in the wake of the recession in the late 2000s, and is aimed at preventing future financial crises of a similar nature.
A side-effect of Dodd-Frank is a sweeping change to business litigation for the private sector and according to a report from Thomson Reuters, Dodd-Frank played a role in a 16% increase in business rule changes around the globe in 2011. About 14,215 regulatory announcements were made last year – up from 12,179 in 2010 – and some are expecting the number to rise further in 2012.
Roughly 57% of these regulatory announcements came from the United States. The report further states that with nearly 80% of Dodd-Frank legislation yet to be completed, 2012 could be another banner year in rule change for businesses.
A Thomson Reuters official associated with the report elaborated on the findings. “Our analysis illustrates the magnitude of the challenge facing businesses globally and the need for them to keep abreast of what is going on in each and every market in which they operate,” he said. “This growth in activity also has an effect on the level of compliance spending, which is bound to rise, leaving less to lend, invest, and do the other core activities which will be necessary to revive the global economy.”
Business legislation is definitely tightening, and combined with the ever-changing nature of business law, it could be greatly beneficial to business owners and operators to consult with an attorney. Legal representation gives you a knowledgeable source that you can rely on if you have business litigation questions, and that support can help you make better decisions for your business.
Source: Reuters, “Companies hit with 14,125 regulatory announcements globally in 2011 up 16%, says Thomson Reuters GRC,” Feb. 1, 2012