A month into the Trump presidency, there have been a number of important statements from the executive branch on the regulation of executive compensation impacting the financial services industry. On February 3, 2017, President Trump issued a statement on the core principles for regulating the U.S. financial system (“Core Principles”). The statement requires the Treasury and all heads of member agencies of the Financial Stability Oversight Council to report within 120 days (by June 3, 2017) all existing laws, treaties, guidance, regulations, etc., that promote the Core Principles, and all such laws, etc., that inhibit the Core Principles. The Core Principles provide some insight into future regulation or repeal efforts by the Trump administration impacting executive compensation. The Core PrinciplesThe Core Principles include empowering Americans to make independent financial decisions and informed choices in the marketplace, save for retirement, and build … [Read more...] about Looking Ahead: Executive Compensation for Financial Services in a Trump Administration
Politically, 2016 is a year few of us will soon forget — and 2017 could be just as memorable, as the focus shifts from the campaign trail to Capitol Hill. With Congress adjourned for the year and the framework of the Trump administration coming into focus, now is a good time to step back and briefly assess what we’ve learned in the past six weeks on some key issues.It’s important to note that we are in unchartered waters. The situation is in constant flux, and every day brings at least as many new questions as answers. In this unsettled state of affairs, we offer two fundamental pieces of advice:First, get used to it. In the weeks before the inauguration the headlines and surprises will only come faster. And once the new Congress and president are sworn in, we expect immediate action in both branches. The result could be a policy and regulatory shift of historic proportions.Second, if you have interests at stake, you need boots on the ground in the capital. When … [Read more...] about Trump Transition: What Lies Ahead For Tax, Health Care, Environment And Financial Services
Private aviation in Europe will soon be subject to heightened regulatory standards following the implementation of Regulation (EU) No. 800/2013 (the Regulation). From August 25, 2016, operators of "complex motor-powered aircraft" for noncommercial operations (NCC) must comply with the standards imposed by the Regulation. Financiers of these aircraft have kept a cautious eye on how the Regulation might affect their investment in these aircraft and whether action needs to be taken to mitigate any potential adverse exposure.The purpose of this article is (i) to provide an explanation of the Regulation and what it means for private aviation, (ii) to analyze how the Regulation will affect aircraft financiers and (iii) to suggest measures to be taken by such financiers to mitigate any potential adverse exposure created by the Regulation. BackgroundAviation regulators have typically afforded greater protection to fare-paying "commercial" passengers than to those willing to undertake the … [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)). The GLBA amendments provide that financial institutions are no longer required to provide annual privacy notices unless there has been a change in the institution’s privacy policies or the institution shares nonpublic personal information with outside parties for marketing purposes. Investment companies, registered and private fund advisors and broker-dealers, among others, are considered financial institutions for GLBA purposes.The FAST Act also provides a new Securities Act of 1933 (1933 Act) Section 4(a)(7) exemption from … [Read more...] about Federal Highway Bill Eliminates Annual Privacy Notice Requirement for Financial Institutions
Last week the New York State Legislature passed and the Governor signed into law, the 2011-2012 State budget. Included in the budget was legislation (Part A of S.2812-C/A.4012-C codified as Chapter 62 of the Laws of 2011) establishing the Financial Services Law (FSL), that consolidates the New York Insurance and Banking Departments into a new single entity, the Department of Financial Services.The concept of merging the two departments was raised in the recent past by the New York State Assembly, only to be rejected because the consolidation would not result in any significant taxpayer savings. This year, however, the concept of consolidating these diverse departments, which was discussed by the Governor during his election campaign and then mentioned in his State of the State Address, surprisingly garnered little direct opposition from the insurance or banking industries, or Legislature. Instead, the financial services industry’s focus was largely confined to the original … [Read more...] about Recently Passed New York State Budget Consolidates Banking and Insurance Departments into Department of Financial Services