Page 11 - Investment Advisor - Jan/Feb 2021

Beginnings

WASHINGTON WATCH

By Melanie Waddell

Biden Fills Out Economic Team, Picking

Boston Mayor to Head Labor

A revamped Labor fiduciary rule as well as the SEC’s Reg BI could be on tap
in the New Year.

Commodity Futures Trading Commission,
and Preet Bharara, the U.S. attorney for
the Southern District of New York under
former President Barack Obama.
Clayton left the agency on Dec. 22.
SEC Commissioner Elad Roisman, a
Republican, was named interim SEC chair.
Under the Biden administration, “I
don’t expect the SEC to scrap Reg BI and
start from scratch,” said Barbara Roper,
director of investor protection for the
Consumer Federation of America. “I do
Boston Mayor Marty Walsh expect [the SEC under Biden] to move
relatively quickly to clarify the meaning
t press time in early January, exception of Neera Tanden to head the of best interest, and to do so in a way
President-elect Joe Biden and Office of Management and Budget. that represents a clear enhancement
A Vice President-elect Kamala Tanden “has Democratic detractors,” over suitability, and to clarify how it
Harris completed filling out their eco- Valliere said. “But Biden will not have determines whether policies and proce-
nomic team — which included announc- to spend political capital on his nomina- dures mitigate conflicts of interest.”
ing their plans to nominate Boston tions, and he now has the upper hand on
Mayor Marty Walsh, a former top union judicial appointments.” LABOR FIDUCIARY PTE
leader, to head the Labor Department. Biden also said on Jan. 8 that he Walsh, a Democrat, was sworn in to serve
If confirmed, a more stringent Labor planned to “lay the groundwork” for the a second term on Jan.1, 2018. He was pre-
fiduciary prohibited transaction exemp- next COVID economic relief package dur- viously a member of the Massachusetts
tion to align with the Securities and ing the week of Jan. 11. The $900 billion House of Representatives, serving in
Exchange Commission’s Regulation Best bipartisan COVID relief package passed that office from 1997 until 2014 and rep-
Andrew Harrer/Bloomberg House and executive branch, Biden “is just a down payment,” Biden said. eyes will be on whether Walsh decides
Interest is likely on tap under Walsh.
in December “is an important step, but
resenting the Thirteenth Suffolk district.
If confirmed as Labor Secretary, all
With a Democratic sweep in the Senate,
All eyes will also be peeled on Biden’s
likely to get all of his Cabinet nominations
to amend or scrap Labor’s fiduciary
choice to fill the SEC chair seat.
Names being floated to replace SEC
approved,” Greg Valliere, chief U.S. strate-
prohibited transaction exemption to
align with the Securities and Exchange
Chairman Jay Clayton under Biden include
gist for AGF Investments, said in his early
Commission’s Regulation Best Interest.
Gary Gensler, former chairman of the
January email briefing, with the possible
JANUARY/FEBRUARY 2021 INVESTMENT ADVISOR 9