FiSolve Weekly News Digest: August 29, 2025

Here is what we are reading in the news this week...

Fifth Circuit Remands SEC Short Sales and

Securities Lending Disclosure Rules

While upholding the U.S. Securities and Exchange Commission's authority to regulate short sales and securities lending, the United States Court of Appeals for The Fifth Circuit remanded rules enacted by the SEC requiring additional disclosure in these areas.  The Court found the agency failed to adequately assess the rules’ cumulative economic impact.  In siding with the Managed Futures Association and the Alternative Investment Management Association (AIMA), the court emphasized federal agencies must perform a substantive and meaningful cost-benefit analysis when enacting new rules.  Read more here.

SEC Obtains Final Judgment against Investment Adviser in Cherry-Picking Scheme

The Securities and Exchange Commission obtained a final judgment against the former managing partner of a now defunct SEC-registered investment advisory firm for engaging in a “cherry-picking” scheme.  Over a more than two-year period, the SEC alleged the individual used his firm’s omnibus trading account to disproportionately allocate profitable option trades to his personal account and disproportionately allocate unprofitable options trades to his clients’ accounts.  The individual agreed to pay more than $2 million in disgorgement and penalties, consented to an industry bar and accepted other remedial measures.  Read more here.

Americans’ 401(k)s Are More Tied to Stocks Than Ever

The Wall Street Journal reports Americans are increasingly investing their 401(k) accounts in equities, influenced by market gains.  This trend applies to workers across nearly all age groups.  Even target-date funds, designed to shift to bonds as retirement nears, now allocate more to stocks, increasing market exposure.   The article notes investors’ appetite has left stocks looking expensive compared with their historical average, based on price-to-earnings ratios.  While this gives pause to some investors, it does not yet appear to be slowing the pace of investment into equities.  Read more here.

ISDA, SIFMA and FIA Comments on Enhanced Supplementary Leverage Ratio Reforms

The International Swaps and Derivatives Association, Inc (ISDA), the Securities Industry and Financial Markets Association (SIFMA), and the Futures Industry Association (FIA) submitted a joint comment letter to the Federal Reserve, FDIC, and OCC strongly supporting the proposed recalibration of the Enhanced Supplementary Leverage Ratio (eSLR) and related Total Loss-Absorbing Capacity (TLAC) and Long-Term Debt (LTD) requirements.  The Associations emphasized the urgency of finalizing and implementing the rule no later than January 1, 2026. Read more here.

CFTC Acting Chairman Announces

Next Crypto Sprint Initiative

Commodity Futures Trading Commission Acting Chairman Caroline D. Pham announced the CFTC will begin its next crypto sprint initiative for implementation of the recommendations in the President’s Working Group on Digital Asset Markets report.  The CFTC invites all interested stakeholders to submit feedback and suggestions on all recommendations for the CFTC by submitting a comment on the CFTC website by October 20, 2025.  Read more here.

FCA Seeks to Simplify Supervisory Communications

The Financial Conduct Authority announced that as part of its Consumer Duty requirements review, it is streamlining its supervisory publications to make its priorities clearer, and support a commitment to smarter, more effective regulation.  Read more here.

FinCEN Issues Advisory and Financial Trend Analysis on Chinese Money Laundering Networks

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) is raising the alarm on Chinese money laundering networks (CMLNs), which it states poses a significant threat to the U.S. financial system.  FinCEN is issuing: (1) an Advisory to urge financial institutions to be vigilant in detecting the use of CMLNs by Mexico-based drug cartels, including several designated as Foreign Terrorist Organizations; and (2) a Financial Trend Analysis highlighting the scope and breadth of CMLN activity in the United States.  Read more here.

Stanford University Study Finds AI Causes a “Significant and Disproportionate” Effect on Young Workers’ Job Opportunities

A new study published by Stanford finds generative AI is already reshaping the labor market—particularly for young professionals in financial services and other high-exposure sectors.  Since late 2022, entry-level workers in roles like data analysis, client service, and software development have seen a 13% relative decline in employment, while older peers in the same roles remain unaffected.  The report finds that AI tools which automate codified tasks are displacing junior talent more than those that augment human judgment.  For financial firms, this signals a need to rethink talent pipelines, training strategies, and how AI adoption may quietly erode the foundational layers of workforce development.  Read more here.

FiSolve Fall Roundtables to be Announced

Stay tuned for information relating to an upcoming roundtable this fall.  The Roundtable is planned to take place in New York City.

‼️FiSolve's Negotiation Tip of the Week‼️

(Reframing Disagreement) 

In our industry, internal conflicts often stem from competing priorities—risk vs. growth, compliance vs. innovation, short-term vs. long-term strategy.  When negotiating with colleagues or leadership, shift the dynamic by reframing the issue: “We’re both trying to protect the firm’s interests, just from different angles.” This approach reduces defensiveness, invites collaboration, and positions you as a strategic partner rather than a challenger.  Use data to support your position but lead with shared goals to build trust and momentum.  

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