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Federal Issues

Consumer Financial Protection Bureau 

In 2009, the Obama administration proposed a new, federal consumer financial protection agency to prevent the kind of unsafe, predatory lending practices that gave rise to the subprime crisis and resulted in millions of Americans losing their homes to foreclosure. The legislation in the House of Representatives would have included financial planning, tax planning, tax return preparation and pro bono financial literacy education as “financial products” subject to regulation.  This would have subjected CPAs to a new federal regulator with the power to conduct periodic examinations and impose sanctions for violations of federal consumer laws and any future regulations of the proposed consumer agency.  The House and Senate legislation ultimately created an independent Consumer Financial Protection Bureau (CFPB) within the Federal Reserve.

The AICPA was successful in winning recognition by House and Senate lawmakers of the important and vital role CPAs play in advising Americans on their financial decisions. The CFPB does not regulate CPAs engaged in “customary and usual” accounting activities, including those defined as covered consumer financial products. 

Resources

Copy of Legislation

A copy of the law is available on the Library of Congress's THOMAS website.  The law and all major Congressional actions leading to passage are available by using the advanced search function and searching for H.R. 4173 by bill number under the 111th Congress.  The CFPA provisions were originally included in H.R. 3126, also available on THOMAS.

Issue Paper

September 9, 2009 AICPA Issue Paper regarding CFPA

AICPA Letter

July 28, 2009 letter to House Financial Services Committee Chairman Barney Frank and Ranking Member Spencer Bachus in favor of exempting CPAs from the CFPA.

AICPA Testimony

September 23, 2009 Testimony of Robert Harris, AICPA Vice Chairman, before the House Small Business Committee

Staff Contact

Peter Kravitz
Director – Congressional and Political Affairs
202-434-2918
pkravitz@aicpa.org

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Federal Legislative and Regulatory Issues

Federal Law :  Th is page highlights the advocacy issues the Congressional & Political Affairs Team is currently engaged in.
Published on January 31, 2012

FASB Independence and Fair Value Accounting

Article :  The AICPA strongly and unequivocally supports independence of the U.S. and international accounting standard setting bodies, the Financial Accounting Standards Board (FASB) in Norwalk, Connecticut, and the International Accounting Standards Board (IASB) in London.
Published on January 26, 2012

Whistleblower Rules under Dodd Frank Act

Article :  Dodd-Frank Act Sections 922 and 748 require the Securities and Exchange Commission and Commodities Futures Trading Commission to implement rules to pay cash awards of up to 30% in settlements over $1 million to whistleblowers who voluntarily provide original information about violations of the Securities laws and Commodity Exchange Act,
Published on January 23, 2012

Interstate Taxation/Mobile Workforce Bill

Article :  The AICPA is supporting legislation that would reduce the tax burden and compliance requirements related to nonresident state income tax withholding laws.
Published on January 23, 2012

GAO Study of Financial Planning

Federal Law :  Dodd-Frank required the GAO to conduct a study on the effectiveness of existing regulation of financial planners, including tax advisors.  The AICPA met with the GAO during the study to present the profession’s point of view.  AICPA strongly opposed any new regulatory structure affecting CPAs as they are already comprehensively
Published on January 23, 2012

AICPA Letter in Support of Grimm bill, December 12, 2011

Legislative Letters :  AICPA Letter in Support of Grimm bill, December 12, 2011
Published on January 23, 2012

Audits of Federal Funds (Single Audits)

Article :  Entities that receive federal funds including states, local governments, and not-for-profit organizations (NPOs), are subject to audit requirements commonly referred to as “single audits” under the Single Audit Act of 1984, as amended in 1996.  The Single Audit Act was enacted to standardize the requirements for auditing federal programs. 
Published on January 13, 2012

Aiding and Abetting Liability

Article :  The Private Securities Litigation Reform Act of 1995 empowered the Securities and Exchange Commission to pursue aiding and abetting securities claims against third parties that have a business relationship with a company engaged in fraudu
Published on January 13, 2012

Barry Melancons Letter to Congress Regarding Mobile Workforce - 11.15.11

Comment Letter :  Barry Melancon's Letter to Congress Regarding Mobile Workforce - 11.15.11
Published on January 03, 2012

XBRL

Article :  Extensible Business Reporting Language (XBRL) used in financial and other reporting allows for easier access to more transparent information.  AICPA supports legislative proposals to utilize XBRL by companies, Federal agencies and recipients of Federal funds.
Published on December 22, 2011

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