Trump Stocks Cabinet with Industry Insiders
Welcome to this week's News Brief, a roundup of some of Ignites' top stories of the past week.
President-elect Donald Trump has started announcing his picks for cabinet appointments, including several with industry ties.
Vivek Ramaswamy, who co-founded Strive Asset Management, has been tapped to run the new Department of Government Efficiency alongside Elon Musk. Ramaswamy, a Trump loyalist, had run for president, but failed to get the pick for the top of the Republican ticket. Jay Clayton, who chaired the Securities and Exchange Commission during Trump's first term, has been nominated as U.S. attorney for New York's Southern District. And Chris Wright, Liberty Energy's CEO, has been selected as energy secretary. Liberty was among several firms to sue the SEC over its climate disclosure rule. Wright testified to Congress at the time that he sees the rule as a "threat" to markets.
In other news, lawmakers want to open the door to allowing collective investment trusts on 403(b) plan menus. However, a half dozen investor advocate groups say that doing so could create more harm than good. Since CITs aren't covered by Erisa and don't have to disclose as much information as mutual funds do, 403(b) savers could be exposed to hidden risks and costs, they say. The Investment Company Institute and American Retirement Association are among the groups advocating for allowing CITs in these plans, Ignites' David Isenberg reported. CITs generally cost less than mutual funds.
What's Next?
Who Trump picks to lead the SEC, Labor Department and other financial regulators could substantially impact how mutual funds and ETFs operate and the oversight that they're subject to. Join us at 11 a.m. ET on Nov. 21 for our next webcast, "Asset Management Under Trump Redux." Panelists from MFS, Willkie Farr & Gallagher and Healthy Markets Association will discuss what the new administration means for the industry. Register here.
Future Representation?
More than a third of industry workers are white men, a recent Morningstar survey found. However, there is greater representation of women, Asian, Black and Hispanic employees in more junior positions, which could lead to more diversity over time, Brian Ponte reports.
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