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However, if the CFPB's proposed rule becomes final, the industry might see a considerable shift away from the use of arbitration agreements in consumer contracts.
Paul Volcker — the former chairman of the Federal Reserve for whom the rule was named — and other reformers have rightly urged significant changes before the rule becomes final in mid-July.
If the proposed rule becomes final, it will significantly impact the current industry practice of including arbitration clauses with class action waivers in these types of contracts, which the Supreme Court has ruled are valid in a recent series of cases addressing the issue.
"If that proposed rule becomes final, it will put out of business a large segment of the industry because they won't be able to operate under these very stringent regulations," Kaplinsky said.
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After rules become final, the focus immediately shifts to compliance".
The issuers have until Sept. 23 to comment on proposed changes before the rules become final.
"The regulatory landscape for hedge funds in 2012 is dramatically different from what came before as Dodd-Frank's rules become final," Nicholas Tsafos, a partner at EisnerAmper, said in a statement.
Scientific organizations and opponents of animal research have vowed to push for changes before the rules become final.
The rule framework for Regulation CF will become final on May 16, 2016, though several filing-related rules became final on January 29 , 2016
The task now is to stand firm against any efforts to weaken the rule before it becomes final.
After more public comment, a rule would become final.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com