A recent article by lawyer Lori Schneider offers a comprehensive view of the current political landscape as it affects the financial services sector. Among other topics, the article discusses the recent presidential actions toward financial sector deregulation and the possible cost and impact; the areas targeted for regulatory focus, including a uniform fiduciary standard, mutual fund board governance, the impact of technology on the industry, and investment product innovation; and the fate of existing SEC rule proposals. The author believes that the industry “stands to continue to benefit from a strong regulatory regime that focuses on smart regulation that can enhance the industry’s future growth, and remains consistent with the SEC’s mission to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.”
Meanwhile, recent reports continue to signal the regulatory changes ahead. President Trump recently announced to banking executives his plans for a major Dodd-Frank overhaul. A Treasury Department report in response to Trump’s February executive order to review key financial regulations is expected to be released in June and will outline a proposal for possible regulatory changes. House Financial Services Committee Chairman Jeb Hensarling also announced that he plans to introduce a new draft of the “Financial CHOICE Act” that would overhaul Dodd-Frank and strongly limit the CFPB’s power.