WEBVTT - Bloomberg Law Brief: Donald Trump's SEC (Audio)

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<v Speaker 1>Bloomberg Law with June Grosso and Michael Best on demand

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<v Speaker 1>via our Bloomberg Radio Plus app, free for iPhone and

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<v Speaker 1>Android devices. Now it's time for our daily Bloomberg Lab breef,

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<v Speaker 1>exploring legal issues in the news and Today, Bloomberg Law

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<v Speaker 1>host June Grasso discusses how the Securities and Exchange Commission

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<v Speaker 1>is being affected by the election of Donald Trump. She

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<v Speaker 1>speaks with Jim Cox, law professor at Duke University Law School.

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<v Speaker 1>Jim is Trump's election a game changer for the sec

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<v Speaker 1>He's promised to dismantle Dodd Frank. But beyond that, what

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<v Speaker 1>can we expect? Well, I think they could. They're going

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<v Speaker 1>to have their plate very full with an initiative that

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<v Speaker 1>Chairman White started than that is rethinking all the disclosure

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<v Speaker 1>guidelines that apply to proxy statements, public offerings of securities,

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<v Speaker 1>and annual reports and quarterly reports. That is ongoing. They're

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<v Speaker 1>getting lots and lots of feedback on the question of

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<v Speaker 1>is there too much disclosure? What kind of disclosure should

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<v Speaker 1>we And the important question is can we start scaling

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<v Speaker 1>disclosure so that smaller companies have lighter burdens than larger

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<v Speaker 1>companies and those can be justified. That is the process

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<v Speaker 1>that is going to consume a awful lot of activity.

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<v Speaker 1>The other area where I think that you're likely to

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<v Speaker 1>see pushback and changes will be going back and re

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<v Speaker 1>examining the various rules were put in for broker dealers.

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<v Speaker 1>That is, we have yet to see whether the SEC

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<v Speaker 1>will adopt the benefit of the investor standard that Department

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<v Speaker 1>Labor has developed as the fiduciary obligation that applies to

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<v Speaker 1>broker dealers. We do have the Labor rule that applies

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<v Speaker 1>with respective retirement funds. My guess is that there's will

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<v Speaker 1>be a total wholesale reexamination that rule, which has been

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<v Speaker 1>very much opposed by the brokerage industry, and so it's

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<v Speaker 1>going to be the result that that provision, which is

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<v Speaker 1>actually mandated by Dodd Frank, will be one of the

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<v Speaker 1>provisions to go and then in the area and force.

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<v Speaker 1>But my guess is at Republicans and Democrats have an

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<v Speaker 1>approach enforcement with a fair degree of equanimity, and mainly

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<v Speaker 1>because we find that it's not truly big big companies

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<v Speaker 1>that become under the gun of at least SEC standard

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<v Speaker 1>frauductions totally avoided the very strong lobby into history of

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<v Speaker 1>the accounting industry, and so I don't think we're going

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<v Speaker 1>to see much change there. So enforcement will be something

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<v Speaker 1>out there, but I think that benign neglect in some

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<v Speaker 1>areas and then um using the initiatives have started by

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<v Speaker 1>White to rethink and scale down substantially the disclosure burdens

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<v Speaker 1>and as Jim Cox, a law professor at Duke University

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<v Speaker 1>Law School, speaking with Bloomberg Lahouse stun Grasso, you can

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<v Speaker 1>listen to Bloomberg Law week days at one pm Wall

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<v Speaker 1>Street Time here on Bloomberg Radio and now among the

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<v Speaker 1>top legal stories from Bloomberg Law, Microsoft has submitted concessions

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<v Speaker 1>to European Union ATTI Trust officials examining its takeover of LinkedIn,

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<v Speaker 1>a move that may allow the deal to win early

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<v Speaker 1>stage approval. Concessions made in the early stage of the

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<v Speaker 1>e USE review, including s ST sales, can help regulators

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<v Speaker 1>approve a deal without opening an investigation that could last

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<v Speaker 1>at least four months. Microsoft and linked In have said

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<v Speaker 1>they planned to close the deal by the end of

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<v Speaker 1>this year, and as this morning's Bloomberg Law Brief. You

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