Final Dodd-Frank Diversity Rule

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final-dodd-frank-diversity-rule

The six federal agencies issued a final interagency policy statement on establishing joint standards for assessing the diversity policies and practices of the financial institutions they regulate. The Policy Statement became effective with its publication in the Federal Register on June 10, 2015. The Federal Reserve Board, Consumer Financial Protection Bureau, Federal Deposit Insurance Corporation, National Credit Union Administration, Office of the Comptroller of the Currency, and Securities and Exchange Commission are requesting public comments on the information collection aspects of the final joint standards, which are due within 60 days of the publication in the Federal Register (August 10, 2015).

The stated goal of Section 342 of Dodd-Frank is to ensure “the fair inclusion and utilization of minorities, women, and minority-owned and women-owned businesses in all business and activities of the agency at all levels, including in procurement, insurance and all types of contracts.” Each agency will be or has already established an Office of Minority and Women Inclusion (OMWI), which will be responsible for “all matters (pertaining) to diversity in management, employment and business activities.”

The policy statement suggests that an entity should address whether the entity maintains a supplier diversity policy that attempts to provide a fair opportunity for minority and women-owned contractors, or organizations of such contractors, and publicizing procurement opportunities.

Valuation Management Group received the Women’s Business Enterprise National Council Certification in July 2014 and the council recertified the designation in July 2015. The WBENC certification is awarded after significant due diligence by the council to determine the business is truly owned and managed by a woman or women.

Valuation Management Group decided to obtain the certification to assist our clients and future clients in their supplier diversity initiatives. The policy statement encourages utilization of women-owned and minority-owned businesses by financial institutions. The ultimate goal of the policy is to see increased hiring and utilization by suppliers of services by women-owned and minority-owned businesses.

The company’s President/CEO, Vicky Thompson, states “We are proud to hold the WBENC certification, which gives our clients’ confidence that they are partnering with a woman owned company. It was a very challenging process to obtain the certification, but we feel it benefits our clients by being able to confirm with their regulators their commitment to diversity.”

Valuation Management Group is a national appraisal management company that manages the appraisal process for community banks, mortgage bankers and credit unions. We offer the full array of commercial and residential appraisal products and services. We take the appraisal process from ordinary to extraordinary. VMG welcomes your call to discuss our national appraisal management services.

 

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