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In Ignites and Fund Board Views, Investment Management Counsel Discusses the Future of FSOC and the Derivatives Rule Under a New President and New SEC Chair

November 30, 2016 Practices: Investment Management

As the SEC prepares for a new Chair, “independent fund directors have plenty to deal with and should stay the course through the upcoming leadership transition at the Commission, which is likely to last well into next year,” stated investment management counsel David Tittsworth (Washington, D.C.) in a Nov. 22, Fund Board Views article. In the wake of Chair White’s announced departure, the piece outlines that the SEC is unlikely to release a final rule on fund use of derivatives by mutual funds before White leaves. Though a deal between the Commissioners currently in place is possible, it is unlikely, Mr. Tittsworth noted. 

A subsequent Ignites article published on Nov. 23, examines the future of The Financial Stability Oversight Council (FSOC) under the Trump administration. “A full repeal of the FSOC may be unlikely given that legislative overhauls of that type are rife with obstacles, even with one party ruling both houses of Congress,” stated Mr. Tittsworth in the piece. However, Mr. Tittsworth continued, the council … will almost undoubtedly change in approach. “Even if you don’t have any new legislation at all, Trump’s appointments will definitely reshape FSOC,” Mr. Tittsworth outlined, also noting the potential impact of the Financial Choice Act, which passed the House Financial Services Committee earlier in the year.