On March 2, the SEC approved a joint proposed rulemaking to implement Section 956 of the Dodd-Frank Act. Section 956 prohibits incentive-based compensation arrangements that encourage inappropriate risk-taking by covered financial institutions and are deemed to be excessive or that may lead to material losses. When all of the federal agencies involved in this statutory rulemaking approve the rule, it will be published in the Federal Register. Comments must be submitted within 45 days after publication in the Federal Register. SEC Release. Proposed Rule.