The Core PrinciplesThe Core Principles include empowering Americans to make independent financial decisions and informed choices in the marketplace, save for retirement, and build individual wealth. This statement appears to favor a more hands-off approach to individual investment decisions. The Core Principles also require regulations that foster economic growth through more rigorous regulatory impact analysis addressing “systemic risk and market failures, such as moral hazard and information asymmetry.” This would presumably require a more extensive review of the regulatory cost of compliance favoring deregulation. However, the focus on systemic risk arising from moral hazard and information asymmetry could impact executive compensation to the extent compensation practices are seen to further individual conduct that could lead to systemic risk. The Core Principles further require regulations to enable American companies to be competitive with foreign firms in domestic and … [Read more...] about Looking Ahead: Executive Compensation for Financial Services in a Trump Administration
Tax codeUnless it’s included in reconciliation, expect an attempt at bipartisan tax reform sometime in 2017. House Speaker Paul Ryan is intent on streamlining the tax code and reducing taxes. How that plays out, and how he replaces the revenue lost to any tax cut, will be vital questions for many industries. Renewable energy tax credits are likely to come up in that discussion; wind and solar industry groups are already marshaling for a defense. … [Read more...] about Trump Transition: What Lies Ahead For Tax, Health Care, Environment And Financial Services
Complex Motor-Powered AircraftA "complex motor-powered aircraft" is an aeroplane: (i) with a maximum certified take-off mass (MTOM) exceeding 5,700 kg, or (ii) certified for a maximum passenger seating configuration of more than 19, or (iii) certified for operation with a minimum crew of at least two pilots or (iv) equipped with (a) turbojet engine(s) or more than one turboprop engine3 (although the European Commission and the EASA Committee recently agreed on a derogation to allow noncommercial operators of twin turboprops with an MTOM of less than 5,700 kg to operate under Part-NCO instead).4 To put this into context, the MTOM of a Bombardier Challenger 605 (a popular mid-range jet aircraft) is 19,500 kg, and even the Eclipse 550 (which is a "very light jet"), which has an MTOM of 2,722 kg and is certified for operation with a single pilot, is classified as an NCC aircraft by virtue of the fact that it is propelled by two turbojet engines. Most aircraft suitable for … [Read more...] about European Aviation Safety Agency Part-NCC: What Do Financiers Need to Know?
On December 4, President Obama signed the “Fixing America’s Surface Transportation Act’’ or the ‘‘FAST Act.” In addition to providing for highway and transportation spending, section 750001 of the FAST Act amended Section 503 of the Gramm-Leach-Bliley Act (GLBA) by eliminating under certain circumstances the GLBA requirement that financial institutions provide annual privacy notices (new GLBA Section 503(f)). … [Read more...] about Federal Highway Bill Eliminates Annual Privacy Notice Requirement for Financial Institutions
Rather than have separate investigatory units, the law creates a single Financial Frauds and Consumer Protection Unit (FFCPU) which has all of the investigatory and prosecutorial powers of the previous Banking and Insurance Departments, and is empowered to prosecute frauds involving financial products. Although at first blush this would appear to be a large expansion of power, it is tempered by the very limited definition of what constitutes a financial product. Under the law, the term “financial product or service” encompasses any financial product or service “offered or provided by any person regulated or required to be regulated” under the Insurance Law or the Banking Law, as well as any financial product or service otherwise offered or sold to consumers. Excluded from this term, however, are financial products or services that are (i) regulated “under the exclusive jurisdiction of a federal agency or authority;” (ii) subject to state regulation … [Read more...] about Recently Passed New York State Budget Consolidates Banking and Insurance Departments into Department of Financial Services