The Dodd-Frank act has directed the Securities and Exchange Commission, the Federal Deposit Insurance Corp., the Federal Reserve and other agencies to develop compensation rules for money managers to ensure pay policies do not prompt unnecessary risk taking. The measure also requires financial firms to disclose compensation arrangements based on incentives to regulators. Some insiders say the industry has made changes to reduce risky behavior, making the regulations unnecessary. "Market forces have already addressed the issue of excessive risk," said Scott Talbott, senior vice president of government affairs at The Financial Services Roundtable.

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