Memorandum
President Trump Issues Executive Order on Financial Regulatory
ReformFebruary 3, 2017

On February 3, President Trump signed an executive order calling for his administration to review existing
U.S. financial laws and regulations, including the Dodd-Frank Act, in order to determine their consistency
with a set of “core principles” of financial policy identified in the order. 1
The core financial principles identified in the executive order include the following:• empowering Americans to make independent financial decisions and informed choices in the marketplace,save for retirement, and build individual wealth;• preventing taxpayer-funded bailouts;• fostering economic growth and vibrant financial markets through more rigorous regulatory impact
analysis that addresses systemic risk and market failures, such as moral hazard and informationasymmetry;• enabling American companies to be competitive with foreign firms in domestic and foreign markets;• advancing American interests in international financial regulatory negotiations and meetings; and• restoring public accountability within Federal financial regulatory agencies and “rationalizing” the Federal
financial regulatory framework.
The order directs the Treasury Secretary to consult with the heads of member agencies of the Financial
Stability Oversight Council (“FSOC”) in producing a report to the President within four months detailing the1 A copy of the executive order is available at: https://www.whitehouse.gov/the-press-office/2017/02/03/presidential-executive-order-core-principles-regulating-united-states.

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Memorandum – February 3, 20172

extent to which existing laws and regulations promote such “core principles.” 2
Although the order does not specifically identify any existing laws or regulations that the administrationconsiders to be inconsistent with the core principles, areas that the mandated agency report may ultimately
identify for reform include the Volcker Rule, private equity adviser registration, any “fiduciary” standard
applicable to investment advisers and broker-dealers, Dodd-Frank’s orderly liquidation authority andresolution planning requirements, as well as the powers, structure and funding arrangements of the FSOC,
the Office of Financial Research, the prudential bank regulators, the SEC, CFTC, and CFPB. In earlier
remarks before the new President’s Strategy and Policy Forum, President Trump suggested that hisadministration would be “cutting a lot out of Dodd-Frank,” potentially signaling near-term changes to key
provisions of the Dodd-Frank Act that may significantly affect the banking, asset management and otherindustries. While some changes can be implemented by the regulatory agencies themselves, implementing
much of the anticipated agenda of changes will require moving legislation successfully through Congress.

2 The FSOC member agencies include the Federal Reserve, the Commodities Futures Trading Commission (“CFTC”), theFederal Deposit Insurance Corporation, the Federal Housing Finance Agency, the National Credit Union
Administration, the Office of the Comptroller of the Currency, the Securities and Exchange Commission (“SEC”) andthe Consumer Financial Protection Bureau (“CFPB”).

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Memorandum – February 3, 20173

For more information regarding the executive order or other financial regulatory reform efforts, including as
the Administration’s review progresses, please contact any member of the Firm’s Financial Institutions
Group, including those listed below.

NEW YORK CITY

WASHINGTON, D.C.

Lee A. Meyerson+1-212-455-3675
lmeyerson@stblaw.com

Keith A. Noreika+1-202-636-5864
keith.noreika@stblaw.com

Mark Chorazak+1-212-455-7613
mchorazak@stblaw.com
Spencer A. Sloan+1-212-455-7821
spencer.sloan@stblaw.com

The contents of this publication are for informational purposes only. Neither this publication nor the lawyers who authoredit are rendering legal or other professional advice or opinions on specific facts or matters, nor does the distribution of thispublication to any person constitute the establishment of an attorney-client relationship. Simpson Thacher & Bartlett LLP
assumes no liability in connection with the use of this publication. Please contact your relationship partner if we can be ofassistance regarding these important developments. The names and office locations of all of our partners, as well as ourrecent memoranda, can be obtained from our website, www.simpsonthacher.com.

Simpson Thacher & Bartlett LLP

Memorandum – February 3, 2017

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