President-elect Donald J. Trump plans to nominate Wall Street lawyer Walter "Jay" Clayton to replace Mary Jo White as Securities and Exchange Commission chairman.
In doing so, Trump once again indicated that reversing government regulation that passed under the Obama administration is a main goal.
"Jay Clayton is a highly talented expert on many aspects of financial and regulatory law, and he will ensure our financial institutions can thrive and create jobs while playing by the rules at the same time," Trump in a statement. "We need to undo many regulations which have stifled investment in American businesses, and restore oversight of the financial industry in a way that does not harm American workers."
That could mean the end of SEC efforts to produce a fiduciary rule raising the standards for anyone working with retirement funds.
The SEC has been working on a fiduciary rule, but White has said it is not close to completion. Another option is for the agency to produce a softened fiduciary standard that does not overly burden the financial services industry.
Several Republican leaders on Capitol Hill have pushed for the SEC to take the lead on a fiduciary rule. The Department of Labor fiduciary rule takes effect in April, unless the Trump administration moves to delay that date
Republicans in recent years have criticized White's SEC for focusing too much on enforcement, and not enough on its other missions. White got more companies to admit guilt and took more cases to trial than her predecessors.
Following Trump's surprise win in November, White announced she would step down one year early.
Clayton is a partner at Sullivan & Cromwell, which specializes in public and private mergers and offerings. Clayton has also advised several high-net-worth families regarding their investments.
InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at email@example.com.
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