Fiduciary Rule Goes Live, and SEC Calls Cyber the Biggest Market Threat: Regulatory Roundup
The U.S. Labor Department moves to rescind the Obama-era "persuader rule," which opened a door to greater disclosures about how companies try to thwart union-building efforts. Meanwhile, the DOL's fiduciary rule takes effect today, but court clashes continue. And this: the SEC calls cyber the biggest threat to markets. This is a roundup from ALM and other publications.
June 09, 2017 at 10:54 AM
11 minute read
Welcome to our weekly roundup of regulatory news. I'm C. Ryan Barber here in Washington. Reach me at [email protected] and on Twitter: @cryanbarber.
The U.S. Labor Department's moving to rescind an Obama-era rule requiring companies and their lawyers to disclose greater details to federal labor regulators about corporate efforts to dissuade any unionizing. A Texas federal trial judge last year blocked the so-called persuader rule, and the government's appeal has been pending for months. The U.S. Labor Department late Thursday posted a notice of proposed rulemaking and said the agency would start taking comments on June 12. Read more from DOL here, and Reuters has more here. Some lawyers assailed the proposed rule. Bill Robinson, a former president of the American Bar Association, last year told Congress the rule would erode attorney-client confidentiality.
Meanwhile, over in Congress, there are new bills that challenge the U.S. Labor Department's new retirement-savings rule—Obama-era regulations that business groups and new Labor Secretary Alexander Acosta couldn't stop from taking effect. ThinkAdvisor has more here on the legislation. The department's new “fiduciary rule,” which requires brokers to put client interests ahead of corporate profit, goes into effect today. Pending federal appeals cases in Texas and in D.C. are challenging the merits of the rule. The New York Times reports here on the rule's requirements.
Cyber crime is the biggest threat to markets, the SEC's new enforcement co-chief, Steven Peikin, tells Reuters. “The greatest threat to our markets right now is the cyber threat,” Peikin said. “That crosses not just this building, but all over the country.” Bloomberg has more here on top SEC officials picked by SEC Chairman Jay Clayton, a former Sullivan & Cromwell partner.
Social media “influencers” don't seem terribly influenced by the Federal Trade Commission's recent push to promote disclosure of paid promotions online, The Fashion Law reports. As we reported earlier this year, the FTC reminded so-called influencers—celebrities and others with large social media followings—that they need to make clear when they've been paid to advertise a product through their social media accounts. Some brands promised to pay closer attention to their endorsers' practices. But The Fashion Law blog found examples of celebrities continuing to flout the FTC's guidance for avoiding deceptive advertising.
Now hear this. Or don't. Federal transportation regulators this week further delayed an Obama-era rule that would've required hybrid and electric car manufacturers to install an audible alert to help protect pedestrians. The National Highway Traffic Safety Administration issued the rule last year, saying it would prevent 2,400 pedestrian injuries a year. But since January, NHTSA has been putting off the effective date, citing Trump's order to postpone rules that were finalized under Obama but had not yet taken effect. The new effective date: Sept. 5. “This delay of the effective date of the final rule is also based on the need to allow additional time to respond to several petitions for reconsideration filed in response to the final rule,” NHTSA said in its notice.
What about self-driving cars? Speaking at a safety conference this week, Transportation Secretary Elaine Chao said Silicon Valley tech firms and car companies need to be more forthcoming with information to help regulators make informed decisions and build public trust. Chao said the Trump administration was aware of the risks of overregulating an emerging technology. But, she said, “the pressure is mounting on the federal government to do something.” The Wall Street Journal has the story here. The Transportation Department reports: “Secretary Chao has asked NHTSA to accelerate the process of finalizing the updated voluntary framework.”
The DOJ is not invited, for now, to participate in this CFPB case. After being accused by the Consumer Financial Protection Bureau of failing borrowers “at every turn,” the mortgage servicer Ocwen Corp. turned to an unlikely source for help: Attorney General Jeff Sessions' Justice Department. The company filed a motion “to invite the views of the attorney general of the United States,” knowing that the Justice Department had turned against the CFPB on the question of whether the bureau's structure is constitutional. Not so fast, a federal judge ruled this month. In a South Florida federal court, Judge Kenneth Marra said it would be “premature” to extend that invitation. Ocwen, he said, had indicated it will challenge the CFPB's constitutionality but had not yet “actually presented” that challenge. An Ocwen spokesman said that constitutional challenge will be “one of many arguments” raised in a forthcoming motion to dismiss that is due June 19.
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Welcome to our weekly roundup of regulatory news. I'm C. Ryan Barber here in Washington. Reach me at [email protected] and on Twitter: @cryanbarber.
The U.S. Labor Department's moving to rescind an Obama-era rule requiring companies and their lawyers to disclose greater details to federal labor regulators about corporate efforts to dissuade any unionizing. A Texas federal trial judge last year blocked the so-called persuader rule, and the government's appeal has been pending for months. The U.S. Labor Department late Thursday posted a notice of proposed rulemaking and said the agency would start taking comments on June 12. Read more from DOL here, and Reuters has more here. Some lawyers assailed the proposed rule. Bill Robinson, a former president of the American Bar Association, last year told Congress the rule would erode attorney-client confidentiality.
Meanwhile, over in Congress, there are new bills that challenge the U.S. Labor Department's new retirement-savings rule—Obama-era regulations that business groups and new Labor Secretary Alexander
Cyber crime is the biggest threat to markets, the SEC's new enforcement co-chief, Steven Peikin, tells Reuters. “The greatest threat to our markets right now is the cyber threat,” Peikin said. “That crosses not just this building, but all over the country.” Bloomberg has more here on top SEC officials picked by SEC Chairman Jay Clayton, a former
Social media “influencers” don't seem terribly influenced by the Federal Trade Commission's recent push to promote disclosure of paid promotions online, The Fashion Law reports. As we reported earlier this year, the FTC reminded so-called influencers—celebrities and others with large social media followings—that they need to make clear when they've been paid to advertise a product through their social media accounts. Some brands promised to pay closer attention to their endorsers' practices. But The Fashion Law blog found examples of celebrities continuing to flout the FTC's guidance for avoiding deceptive advertising.
Now hear this. Or don't. Federal transportation regulators this week further delayed an Obama-era rule that would've required hybrid and electric car manufacturers to install an audible alert to help protect pedestrians. The National Highway Traffic Safety Administration issued the rule last year, saying it would prevent 2,400 pedestrian injuries a year. But since January, NHTSA has been putting off the effective date, citing Trump's order to postpone rules that were finalized under Obama but had not yet taken effect. The new effective date: Sept. 5. “This delay of the effective date of the final rule is also based on the need to allow additional time to respond to several petitions for reconsideration filed in response to the final rule,” NHTSA said in its notice.
What about self-driving cars? Speaking at a safety conference this week, Transportation Secretary Elaine Chao said Silicon Valley tech firms and car companies need to be more forthcoming with information to help regulators make informed decisions and build public trust. Chao said the Trump administration was aware of the risks of overregulating an emerging technology. But, she said, “the pressure is mounting on the federal government to do something.” The Wall Street Journal has the story here. The Transportation Department reports: “Secretary Chao has asked NHTSA to accelerate the process of finalizing the updated voluntary framework.”
The DOJ is not invited, for now, to participate in this CFPB case. After being accused by the Consumer Financial Protection Bureau of failing borrowers “at every turn,” the mortgage servicer Ocwen Corp. turned to an unlikely source for help: Attorney General Jeff Sessions' Justice Department. The company filed a motion “to invite the views of the attorney general of the United States,” knowing that the Justice Department had turned against the CFPB on the question of whether the bureau's structure is constitutional. Not so fast, a federal judge ruled this month. In a South Florida federal court, Judge Kenneth Marra said it would be “premature” to extend that invitation. Ocwen, he said, had indicated it will challenge the CFPB's constitutionality but had not yet “actually presented” that challenge. An Ocwen spokesman said that constitutional challenge will be “one of many arguments” raised in a forthcoming motion to dismiss that is due June 19.
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