Wednesday, December 29, 2010 at 01:53PM | Staff Act Includes Provision to Study and Propose Regulations for the 1031 Exchange Industry
The Wall Street Reform and Consumer Protection Act was signed into law in 2009 to protect consumers from financial services providers such as lenders, credit card companies, banking institutions, and other perceived financial institution abuse.
A little known provision in the Act includes a requirement to review the 1031 Exchange industry, specifically Qualified Intermediary operations, and to make recommendations to Congress on any regulatory oversight that might be necessary and prudent for the protection of consumers.
Consumer Financial Protection Bureau Created
The Act creates a new regulatory body called the Consumer Financial Protection Bureau or CFPB. The Director of the Bureau is required to conduct a review of the 1031 Exchange industry and report back to Congress withiin one year on any proposed legislation and/or regulations necessary or prudent to protect consumers who are using Qualified Intermediary to facilitate a 1031 Exchange transaction. Proposed legislaton or regulatory oversight of the 1031 Exchange industry must be implemented within the following two years.
