FiSolve Weekly News Digest: December 19, 2025

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

SEC Division of Examinations Issues

Marketing Rule Risk Alert 

The U.S. Securities and Exchange Commission's Division of Examinations released a Risk Alert with additional information regarding investment advisers’ compliance with amended Rule 206(4)-1 (the “Marketing Rule”) under the Investment Advisers Act of 1940.  The Risk Alert addresses the Staff’s observations regarding advisers’ compliance with use of testimonials and endorsements, as well as third-party ratings. Specifically, the Risk Alert addresses observations regarding advisers’ satisfaction of disclosure requirements and oversight and compliance practices under the Testimonials and Endorsements Provisions of the Marketing Rule, as well as advisers’ due diligence and disclosure requirements under the Third-Party Ratings Provisions of the rule.  Read more here.

House Passes INVEST Act

The U.S. House of Representatives passed the Incentivizing New Ventures and Economic Strength Through Capital Formation (“INVEST”) Act.  Among other things, the INVEST Act modernizes the accredited investor definition so education, professional credentials, and experience (not just wealth) determine whether an individual can invest in private offerings.  It also mandates the US Securities and Exchange Commission to conduct a study and related rulemaking to adjust the definition of “small entity” and directs future rulemakings to consider small business impacts.  The Act would also modernize e-delivery expand investment options for millions of educators and nonprofit workers, and further protect older investors through a dedicated SEC Senior Investor Taskforce.  Read more here.

JP Morgan Chase Issues Report on

Strengthening the Talent Pipeline

A report published by JPMorgan Chase frames the widening talent shortage not just as an economic problem, but as a strategic risk that could impede growth and competitiveness, particularly in technology-intensive sectors such as financial services.  The report urges shifting workforce development from a cost center to a core strategic asset; it highlights that three-quarters of U.S. companies struggle to find qualified workers and 40 % of adults lack basic digital skills, which directly affects finance firms’ abilities to hire for analytics, cybersecurity, AI, and digital transformation roles.  Among other things, the report recommends scaling apprenticeships, strengthening employer-led training, expanding public-private partnerships, and advancing policies that close the digital skills gap to build a resilient talent pipeline critical for innovation and long-term industry resilience.  Read more here.

SEC’s Division of Trading and Market Issues Statement on the Custody of Crypto Asset Securities by Broker-Dealers

The U.S. Securities and Exchange Commission's Division of Trading and Markets issued important interpretative guidance staff regarding its views on the application of Exchange Act Rule 15c3-3 to crypto assets that are securities.  Specifically, the guidance speaks to a broker-dealer's obligation to promptly obtain and thereafter maintain physical possession or control of all fully paid and excess margin securities it carries for the account of customers pursuant to paragraph (b)(1) of the rule.  This guidance addresses any broker-dealer that carries crypto asset securities for customers, including broker-dealers that conduct a traditional securities business.  Read more here.

FDIC Approves Proposal to Establish GENIUS Act Application Procedures for FDIC-Supervised Institutions Seeking to Issue Payment Stablecoins

The Federal Deposit Insurance Corporation (FDIC) Board of Directors approved a notice of proposed rulemaking that would implement the application provisions under the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act).  The GENIUS Act allows insured depository institutions to issue payment stablecoins through a subsidiary and to engage in certain related activities.  Read more here.

ESMA Reviews Impact of Guidelines on ESG or Sustainability Related Terms in Fund Names

The European Securities and Markets Authority (ESMA) released research assessing the impact of its fund naming guidelines on ESG and sustainability-related terms.  The study found that ESMA’s Guidelines have (1) Improved consistency in the use of ESG terms by increasing alignment of fund names and their actual investment strategies, (2) Enhanced investor protection by reducing greenwashing risks.  Read more here.

💡FiSolve's Negotiation Tip of the Week💡

Preparatory Tactics

Before stepping into any negotiation, invest significant time in preparation by mapping out your objectives, understanding the other party’s issues, priorities and alternatives and identifying potential trade-offs.  Conduct thorough research on market conditions, industry benchmarks, and the counterpart’s business drivers to anticipate their leverage points.  Develop a clear BATNA (Best Alternative to a Negotiated Agreement) and rank your concessions from most to least flexible.  This level of strategic groundwork not only strengthens your confidence but also positions you to steer discussions toward outcomes that align with your long-term goals.  

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