FiSolve Weekly News Digest: December 5, 2025

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

SEC Issues Order Granting Temporary Exemptive Relief on Compliance with Rule 13f-2 and Form SHO

Reporting until January 2028

In light of an ongoing litigation matter, the SEC announced it is granting a temporary exemption, pursuant to Sections 13(f)(3) and 36(a)(1) of the Exchange Act, from compliance with Rule 13f-2 and Form SHO reporting until January 2, 2028.  Additionally, the Commission is providing a temporary exemption, pursuant to Section 36(a)(1) of the Exchange Act, from compliance with Rule 10c-1a with respect to the reporting date until September 28, 2028, and with respect to the dissemination date until March 29, 2029.  Read more here.

FINRA Orders Firm to Pay $2 Million in Restitution to Customers, Fines Firm $1 Million for

Mutual Fund Supervision Failures

FINRA has ordered a firm to pay $2 million in restitution to its customers and has fined the firm $1 million for failing to reasonably supervise Class A mutual fund recommendations, resulting in customers paying unnecessary fees through recommendations that were potentially unsuitable or not in customers’ best interest.  As a result, more than 1,000 fund-switch transactions and over 2,000 short-term sales were potentially unsuitable or not in customers’ best interest, causing affected investors to pay approximately $2.02 million in unnecessary fees and commissions.  In response, FINRA ordered the firm to pay $2 million in restitution to customers and imposed a $1 million fine on the firm.  Read more here.

74% of HR Leaders Say

Talent Shortages are a Major Challenge

A new report from RemoFirst finds 74% of HR leaders say talent shortages are either “very” or “extremely” challenging for their organization, with mid-sized companies feeling the most pressure.  For companies with 500 to 999 employees, the outlook is even more urgent: 61% report talent shortages as “very challenging,” pointing to major gaps in critical roles like artificial intelligence (“AI”), cybersecurity, and data science.  73% believe the most challenging role to fill next year will be in AI.  Read more here.

Commissioner Uyeda Calls for Rethinking Quarterly Reporting and Enhancing Regulatory Transparency 

In remarks delivered at the 2025 Institute for Corporate Counsel, Commissioner Mark T. Uyeda argued that as the market environment evolves, the U.S. Securities and Exchange Commission should revisit the current quarterly reporting regime — potentially allowing domestic issuers to file on a semi-annual basis — to reduce compliance burdens, lower costs, and encourage more companies to go (and stay) public.  Commissioner Uyeda observed that advances in technology and communication significantly reduce the need for regulatory filings to remain the primary channel for corporate disclosure, while noting other major markets and foreign issuers already benefit from less frequent periodic reporting.  Commissioner Uyeda also called for greater transparency in the SEC’s rulebook and decision-making.  This includes clear, public articulation of policy regarding contested issues such as mandatory arbitration clauses in registration statements, rather than leaving important regulatory interpretations to internal memoranda.  Commissioner Uyeda also raised concerns about the potential for coordinated proxy-voting practices.  For example, institutional investors automatically following recommendations from proxy-voting advisory firms, noting such practices may need to be evaluated under beneficial-ownership and disclosure rules if they result in group voting that crosses statutory ownership thresholds.  Read more here.

FCA Assists Firms with Testing AI for Safety

The Financial Conduct Authority (“FCA”) announced it is working with major firms to test AI in a safe place to better understand the potential benefits and risks.  Through the AI Live Testing initiative participating firms who are ready to use AI in the UK financial markets receive tailored support from the FCA’s regulatory team and its technical partner, to develop, assess and deploy safe and responsible AI.  Read more here.

ESMA to Launch Common Supervisory Action on MiFID II Conflicts of Interest Requirements

The European Securities and Markets Authority (ESMA) announced its intention to launch a Common Supervisory Action (CSA) with National Competent Authorities (NCAs) on conflicts of interest in the distribution of financial instruments.  The CSA will assess how firms comply with their obligations under MiFID II to identify, prevent, and manage conflicts of interest when offering investment products to retail clients.  ESMA expects the initiative, together with the exchange of practices among NCAs, will contribute to the consistent application of EU rules and strengthen investor protection in line with its objectives.  Read more here.

💡FiSolve's Negotiation Tip of the Week💡

Succession Planning

When negotiating succession plans, frame the discussion around continuity of client trust and regulatory compliance rather than individual roles or titles.  Emphasize shared accountability for preserving client relationships and mitigating operational risk during transitions.  Position the plan as a strategic investment in stability and growth, using data on retention rates and compliance benchmarks to demonstrate mutual benefit.  This approach shifts the conversation from personal concessions to collective value creation, fostering alignment among stakeholders.

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