This week we cover Review:Credit Trends, DOL Fiduciary Rule, LIBOR Survey and Oil Patch
The Fifth Circuit Court of Appeals issued a mandate vacating the Department of Labor’s Fiduciary Rule. Attached is that Order
Last month, the Securities and Exchange Commission (“SEC”) issued a two-part release (the “Release”) that, as described below, could impact investment managers – including loan managers.. The first part proposes an interpretation (the “Proposed Interpretation”) regarding the standard of conduct the SEC expects from investment advisers. The Proposed Interpretation purports to reflect the SEC’s current views of the standards of behavior that apply to investment advisers. However, some elements, according to Cleary Gottlieb, appear to “reflect a higher standard of conduct than is currently required under federal law.”
The Fiduciary Rule promulgated by the Department of Labor (DOL) under the Obama administration has garnered a lot of attention since Trump took office and now may be on its way out. There have been a number of court challenges to the Rule and last week the Fifth Circuit dealt the rule a possibly fatal blow. As explained in a recent Cadwalader Cabinet article, in a split decision, the Court’s majority ruled in favor of the plaintiffs and found that the Fiduciary Rule is “unreasonable,” and that the DOL acted beyond its authority in promulgating the Fiduciary Rule.
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