FINANCIAL INDUSTRY AND REGULATION

Financial Industry Awaiting Friendlier Regulatory Climate: The Wall Street Journal reports that the financial industry is awaiting a friendlier regulatory climate with Donald Trump, expecting a priority for the new administration will be ousting Securities and Exchange Commission Chair Gary Gensler, whom the president-elect has said he would fire on day one.

DST Fundraising Bounces Back: The DI Wire reports that the year-to-date equity raise for Delaware statutory trust offerings was more than $4.59 billion as of Oct. 31, 2024, a 16.9% bump from the previous end-of-month $3.93 billion and a huge 32.5% October increase – according to data from Mountain Dell Consulting.

Target Date Sell-Off Suit Cost Vanguard $40 Million: ThinkAdvisor reports that Vanguard has agreed to pay $40 million to settle a long-running lawsuit over a sell-off that investors likened to an "elephant stampede" from its target-date funds that left retail investors to take a huge capital gains tax hit.

ESG Misstatements Cost Firm $17.5 Million: Pensions & Investments reports that Invesco Advisers agreed to pay a $17.5 million civil penalty to settle SEC charges for making misleading statements about the percentage of its assets under management that integrated environmental, social and governance factors in investment decisions.

Gensler’s SEC Agenda Coming to an End: The Wall Street Journal reports that Donald Trump’s election win means the almost certain end of Gary Gensler’s leadership of the SEC and the ambitious agenda he forged.

FINRA Seeking 2025 Fee Increases: The DI Wire reports that the Financial Industry Regulatory Authority is seeking to raise member fees to help keep pace with the rapidly increasing cost of overseeing the brokerage industry, according to a proposal filed with the SEC on Tuesday.

DOL Fiduciary, Retirement Rule Reversals Expected: PLANADVISER reports that Assistant Secretary of Labor Lisa Gomez predicted changes to retirement security regulations and financial fiduciary standards under the incoming Trump administration.

Gensler Makes Final Pitch for SEC Crypto Regs: Bloomberg reports that SEC Chair Gary Gensler is making a final pitch for how the agency should be allowed to regulate cryptocurrency markets ahead of the incoming Trump administration and its enthusiasm for digital assets.

POLICY AND LEGISLATION

Trump Likely to Dismantle ESG Regulations: Pensions & Investments reports that President-elect Donald Trump will likely move to dismantle ESG-related regulations when he takes office, blocking SEC rules for corporate and fund disclosures, and Labor Department requirements on pension funds.

GOP Considering Inflation Indexing Capital Gains: Financial Advisor reports that congressional Republicans are working overtime to deliver major legislative gains during President-elect Donald Trump’s first 100 days in office, including a major tax bill that may index capital gains to inflation, reducing the amount of gain that is taxable when an investor sells assets.

Federal Cost-Cutting Panel Named: The Hill reports that President-elect Trump has tapped tech entrepreneurs Elon Musk and Vivek Ramaswamy to lead an advisory group focused on cutting federal spending and reducing the government.

Opportunity Zone Incentive Boost More Likely: Bloomberg Tax reports that investors and tax practitioners see President-elect Donald Trump’s return to the White House and a Republican-led Congress as an opening to boost the opportunity zone tax incentive that aims to reward investment in underserved communities.