Overview
MarketsMedia quoted Steptoe Financial Services partners John Collins, Matthew Kulkin, and Carolyn Walsh in a January 31 article titled “SEC and CFTC Avert EO.” The article discusses why President Trump’s executive order to reduce industry rules and regulation will likely not make a dent in existing Dodd-Frank and other major market regulations.
Mr. Collins says the executive order only affects cabinet-level departments and executive agencies like the Federal Aviation Administration. “It would not affect independent agencies like the US Securities and Exchange Commission, the Federal Reserve, and the Commodity Futures Trading Commission.”
Mr. Kulkin suggests that although the independent market regulators are not required to follow the executive order, they may keep in step with the other agencies and departments. “We’ve seen recent media reports in which independent agencies have said that they plan to comply with the spirit of White House executive orders, including a regulation freeze.”
“If you think about it in terms of the Department of Labor’s fiduciary duty role, it might have some chilling effect on introducing the regulation if the reality of the process of repealing other regulations seems unfeasible,” Ms. Walsh states.
The full article can be read at MarketsMedia.