President-elect Donald Trump said little about the regulation of the investment management industry during the 2016 U.S. presidential elections. Two recent developments offer insight into what the future may have in store of investment companies, investment advisers, and fund directors under the new administration
As noted in our recent client alert, Trump’s transition team offers an initial clue. Specifically, the appointment of Paul Atkins, a former SEC commissioner, and Anthony Scaramucci, the co-managing partner of SkyBridge Capital, may indicate that a more conservative approach toward regulation is on the horizon, as both Paul and Anthony have been vocal critics of heavy regulation and the fiduciary rule.
Second, the Financial CHOICE Act of 2016, a piece of legislation introduced by Republican Representative Jeb Hensarling, is a likely harbinger of dramatic changes to the Dodd-Frank Wall Street Reform and Consumer Protection Act. If enacted, the bill would dismantle major features of the Dodd-Frank Wall Street Reform and Act. Prior to November’s election, the bill had little chance of going anywhere.