DINGELL CONSUMER PROTECTION AMENDMENT
- Requires the Federal financial regulatory authorities to revise existing
rules or prescribe new
rules to provide consumers and investors with accurate, simple, and
complete disclosure of all
commissions, fees, markups, or other costs incurred in the purchase of
financial products.
- Authorizes the SEC to conduct inspections of the new wholesale financial
holding companies
to monitor and enforce compliance by such company or any affiliate with the
Federal securities
laws, after notice to other regulatory authorities and with deference to
their reports of
examination.
- Protects the scope and applicability of the Commodity Exchange Act.
- Protects the applicability of State securities and State insurance laws
(including critical
insurance solvency requirements) while protecting banks from "significant
interference" with
their ability to engage in the business of insurance. Requires consultation
between the Federal
Reserve and the State insurance regulators with respect to coordinated
regulation of companies
that control both a depository institution and an insurance company.
- Protects banks and consumers from the confusion associated with
conflicting insurance
consumer protection regulations by providing that the Federal regulation
will preempt the State
protection where the Federal banking agencies jointly determine that the
Federal provision
provides greater protection to consumers.
- Enhances the functional regulation of securities by underscoring that
banks not registered as
broker-dealers may not collect brokerage commissions in excess of costs
incurred but may
collect a myriad of other types of fees in connection with effecting
securities transactions in trust
capacities and in connection with certain stock purchase plans.
- Clarifies the scope of "traditional banking products" by recognizing the
SEC's jurisdiction
over certain derivative instruments that are securities, and limits the
SEC's interpretative reach
by spelling out the meaning of "securities" and "government securities" for
purposes of the
provision.
- Requires the Secretary of the Treasury, in consultation with the Federal
banking agencies and
the SEC, to conduct a study of whether adequate services are being provided
to low- and
moderate-income neighborhoods and persons of moderate means as a result of
the changes
effected in the financial services industry as a result of enactment of HR
10, and to report to
Congress their findings and recommendations within two years of the date of
enactment.
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