![]() The FCA said banks' remuneration incentives to hit ESG financing targets may have created potential conflicts of interest, encouraging them to accept weak corporate targets. Others are first "looking at structures more closely", said Credit Agricole CIB's Head of European Corporate - Sustainable Investment Banking, Pascale Forde Maurice.īritain's Financial Conduct Authority (FCA) warned in June of "market integrity" concerns, including weak incentives, potential conflicts of interest and unambitious goals. These investments increase top-line revenues while reducing operational and administrative expenses that may result from incremental changes to the current regulatory environment.The banks' tougher standards are discouraging some borrowers from using SLLs entirely, bankers and lawyers told Reuters. But under a divided government, capital markets organizations will continue to be able to view growth through M&A, the creation of strategic partnerships, and investments in new technologies and automation. ![]() In the capital markets, which are already heavily regulated, increasing regulations under a blue wave scenario would have likely proven more restrictive to growth. What room for growth or evolution exists in capital markets? ![]() Multiple bills seeking some form of this tax are pending in the House their passage, though, would face a significant roadblock if Republicans retain control of the Senate. Although Democrats debate the specifics, they broadly support the idea of a financial transaction tax. Other possible regulatory changes may include empowering the Financial Stability Oversight Council to review market activity with more scrutiny or investigate how companies access capital in private markets.īut a Republican-controlled Senate would temper some of the more ambitious goals that require legislative approval, including the enactment of a financial transaction tax as well as a tax on derivatives on a mark-to-market basis at ordinary income tax rates.Ĭonsider the tax on financial transactions: As proposed in the Wall Street Tax Act, a 0.1% tax on trades of stocks, bonds and futures would generate roughly $800 billion over 10 years, according to the Congressional Budget Office. Additionally, Biden has indicated his support for increased disclosures in public filings surrounding diversity and climate change. What a closely divided Senate means for capital markets:īiden has pushed for more investor protections, which may lead to a tougher fiduciary rule. Moreover, a Republican-controlled Senate would most likely act as a restraint on nominees who have more ambitious regulatory agendas. For example, Jay Clayton, chairman of the Securities and Exchange Commission, recently announced that he would step down at the end of the year. Although the president appoints the heads of these agencies for prescribed terms, there is no guarantee that current agency leaders will serve out the full term under a new administration. According to Joe Biden’s plan:īiden’s victory will inevitably lead to changes at the top of key regulatory agencies, which will help him push his regulatory agenda. This is one in our series of industry-focused outlooks for a Biden administration. What does a divided government mean for the middle market? RSM is looking at the policy implications and key issues for various industries. Joe Biden is the projected winner of the presidential election control of the Senate will be won by a slim margin following runoff elections for Georgia’s two seats in January.
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