Monday, August 23, 2010
Under the complex, 2,100-page law, the FDIC and the Federal Reserve are each given distinct regulatory responsibilities; the Fed, for example, is charged with devising regulations pertaining to Section 1075, "Reasonable Fees for Rules and Payment," which addresses, among other things, debit card interchange.
According to industry insiders, many other provisions of the law may also affect the acquiring section. Said provisions require notice-and-comment rulemaking and action by the FDIC or other duly appointed agencies. This reportedly reflects a level of transparency heretofore unseen, extending beyond the 1946 Administrative Procedure Act, which governs the way federal government agencies propose and establish regulations.
"Transparency is always a good thing," said banking expert Travis Powers, Vice President of Partner and ISO Relations at CrossCheck Inc. "I believe consumer advocacy groups will become actively involved in the process. The question in the end will ultimately be whether they actually use that public input to create the policy changes."
According to Andrew Gray, Director of the Office of Public Affairs at the FDIC, variable timelines are associated with the required rulemaking. "We intend to move quickly through the process," he said. "We've already announced a reorganization as part of the legislation and will be moving forward through the formal rulemaking process, allowing for notice and comment, etc."
The FDIC board-approved reorganization includes the creation of a new Office of Complex Financial Institutions and Division of Depositor and Consumer Protection to help carry out its responsibilities as mandated by the financial reform legislation.
The primary forums for federal disclosure and public input on reform policy rules are as follows:
For a summary of the original bill and to learn about policy decision developments, visit the FDIC's dedicated financial reform page at www.fdic.gov/financialreform/ . The FDIC will also file chronological posting notices on proposed and final rules pertaining to the legislation at www.fdic.gov/regulations/laws/federal/notices.html .
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