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Answer: The Dodd-Frank Act was primarily focused on reducing systemic risk and did not include provisions related to consumer protection.
## Explanation **Option C is incorrect** because the Dodd-Frank Act did include significant consumer protection provisions, most notably through the creation of the Consumer Financial Protection Bureau (CFPB). While the primary focus of Dodd-Frank was indeed on reducing systemic risk and regulating the financial system, it also contained comprehensive consumer protection measures. **Analysis of each option:** - **Option A**: Correct - MiFID I did introduce pre-trade transparency requirements to enhance market efficiency and protect investors. - **Option B**: Correct - MiFID II expanded consumer protection measures by adding rules on product governance and requirements for independent investment advice. - **Option C**: Incorrect - The Dodd-Frank Act established the Consumer Financial Protection Bureau and included numerous consumer protection provisions alongside its systemic risk focus. - **Option D**: Correct - MiFID II includes suitability requirements ensuring financial products are only sold to appropriate clients. The Dodd-Frank Wall Street Reform and Consumer Protection Act (2010) was named specifically to highlight its dual focus on both financial system reform and consumer protection, making option C factually incorrect.
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From a consumer protection perspective, which of the following statements is incorrect?
A
MiFID I introduced pre-trade transparency requirements to improve market efficiency and protect investors.
B
MiFID II expanded on the consumer protection measures of MiFID I by including rules on product governance and independent investment advice.
C
The Dodd-Frank Act was primarily focused on reducing systemic risk and did not include provisions related to consumer protection.
D
MiFID II requires firms to ensure that financial products are marketed and sold only to clients for whom they are deemed suitable.
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