11 Nov 2016
After Donald Trump’s unexpected victory in the presidential election, the US investment industry is preparing for a regulatory overhaul that could end some of the most unpopular rules introduced since the financial crisis.
Investors expect the billionaire property tycoon, who beat Democratic candidate Hillary Clinton in a historic victory, to take an axe to investment regulation when he takes office in January. The move is expected to boost profits at asset managers.
Peter Bain, chief executive of Old Mutual Asset Management, the New York-listed fund house, says: “I do believe a Trump administration will look to streamline some financial regulation.”
An asset management banker, speaking on condition of anonymity, adds: “He will definitely bring in lighter regulation for asset managers and banks, there is no doubt about that. This is a huge deal for all of them.”
Since the financial crisis, regulators around the world have introduced many measures aimed at protecting consumers and making markets safer. But the fund industry has been a vocal critic of many of the new rules, complaining such measures have brought unintended consequences that have hurt the people they were meant to protect, as well as the companies’ bottom lines.
Advance your CPD minutes for this content, by signing up and using the CPD WalletFREE CPD Wallet