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US Election Impact

October 20, 2017

Read more about some of the notable areas likely to be affected by U.S. President Donald Trump’s administration and a Republican-controlled Congress, including:

Antitrust

An area in which a vigorous approach is expected based on statements made during the campaign, particularly with respect to repealing the McCarran-Ferguson Act (MFA), which currently protects insurance companies from federal antitrust laws.

Banking and Financial Regulation Reform

Including potential efforts to repeal or reform Dodd-Frank and the Consumer Financial Protection Bureau (CFPB) and the possible reintroduction of some new form of the Glass-Steagall Act. To assist our clients around the globe in navigating the impending reform of the regulation of U.S. financial services by Congress and the Trump Administration, Dechert is launching our new Financial Regulation Reform Tracker website. The Tracker will summarize, catalog and evaluate on an ongoing basis administration, congressional and agency actions directed at financial regulatory reform. It will provide a user-friendly and quick way to access legislative and regulatory developments as well as analysis of those developments. Subscribe to Tracker updates to receive email alerts with the latest developments.

Cybersecurity and Data Privacy

Including efforts to boost U.S. cyber-readiness as a key component of national security as well as potential problems for data flows between the U.S. and foreign countries if the U.S. is viewed as unwilling to adhere to multi-national agreements such as the recently enacted Privacy Shield.

Defense

One of the few areas where Republicans would like to spend more money. They would like to increase the number of troops and troop readiness and maintain superiority, particularly in space- and cyber-based offensive and defensive capability.

Energy and Natural Resources

Particularly the potential end to regulatory constraints on supply and eliminate regulations favoring renewables over fossil fuels as well as other recent environmental regulations, including under the Clean Water Act (CWA). The platform also favors the completion of the Keystone XL pipeline and regulations favoring coal extraction and hydraulic fracturing while also calling for investment in new energy storage technology.

Financial Services and Investment Management, and Employee Benefits (ERISA)

Including information regarding the US Department of Labor's highly controversial "investment advice" regulation under the fiduciary rules of the Employee Retirement Income Security Act, which dramatically extends the reach of fiduciary regulation to broker-dealers, nondiscretionary consultants and advisers and a host of other financial professionals and institutions, but which possibly may not survive in light of the Election.‎

Infrastructure

Where Republicans are generally in favor of public-private partnerships for infrastructure spending, rather than relying on federal funds, and would seek to limit federal funding for mass transit and other projects primarily benefiting cities. The party is in favor of spending to bolster the electric grid.

International Trade and Sanctions

Including the uncertain future of the Trans-Pacific Partnership (TPP), the North American Free Trade Agreement (NAFTA) and the Export-Import Bank as well as changes in the bilateral relationship between the U.S. and China. Significant changes to various U.S. sanctions programs are likely to occur in the near future, particularly with respect to Russia and possibly Cuba.

Labor and Employment

Including the status of Right to Work laws and visas for foreign workers, of particular importance to the science and technology industries. Less labor regulation is also expected. 

Life Sciences and Healthcare

Including the likely repeal of the Affordable Care Act (Obamacare), potential changes to Medicare and other regulations affecting the insurance sector, and reduced regulation of the Food and Drug Administration (FDA). 

M&A

Which is expected to vary by industry, although a potentially lower corporate tax environment and more opportunity for the efficient deployment of overseas cash, combined with broad deregulation, may spur deal making activity generally. 

Tax

Including probable efforts to lower the corporate tax rate to be on par with, or below, other industrial nations as well as potential tax breaks for firms engaged in U.S. manufacturing. 

Technology

Including calls for “balanced” intellectual property protections and more vigorous enforcement of IP laws against overseas infringers as well as support for pushing broadband into rural areas and a reduction in net neutrality regulation.