Financial Regulatory Reform
On July 21, 2010, President Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act (P.L. 111-203), which will have important implications for the financial services industry and the equipment finance sector in particular.
ELFA and its Financial Services Regulations Subcommittee of the Legal Committee focused on key policy issues that could directly affect the equipment finance industry: (1) the scope of the proposed Consumer Financial Protection Agency and its potential impact on the small ticket market; (2) the impact of the risk retention rules on the equipment finance syndications market; (3) the impact of the risk retention rules on the equipment finance securitization market; (4) the regulation of nonbank financial institutions and captive finance companies; and (5) the impact of the Equal Credit Opportunity Act reporting provisions. ELFA's objective is to have policymakers recognize the importance of the equipment finance sector to the capital markets and draw appropriate distinctions between the commercial finance sector and other financial institutions and products.
Since its enactment, ELFA has submitted responses to proposed rules from the Executive Branch and will continue to monitor its implementation to protect the interests of the leasing and finance industry.
On April 3, 2018, the Financial Crimes Enforcement Network issued a set of frequently asked questions (FAQs) regarding the customer due diligence requirements for covered financial institutions. The FAQs address the equipment finance exemption in questions 30 and 31. The full FAQs can be found here:
The Final rule issued by FinCEN in May of 2016 regarding the customer due diligence requirements can be found here:
Credit Risk Retention:
ECOA Data Collection:
ELFA has worked on regulatory and legislative initiatives in the air, rail and marine equipment finance market segments. In the aviation arena, ELFA worked with the Federal Aviation Administration (FAA) and its Administrator on a new rule establishing a re-registration and renewal process for aircraft registrations effective October 1, 2010. In addition, ELFA worked with the FAA on possible revisions to Non U.S. Citizen Owner Trust Agreements.
In the rail sector, ELFA has worked with DOT on it "Rail Plan" for freight and passenger rail, its high speed rail program including the use of pool lease arrangements in high speed rail, its TIGER II (Transportation Investment Generating Economic Recovery) grant program and on public-private partnerships (PPP) in transportation in general. In the marine sector, ELFA has focused on provision affecting on finance lessors in the maritime space.
Review Historical Documents related to Federal issues.
To learn more, please contact:
VP, Federal Government Relations