FiSolve Weekly News Digest: February 20, 2026

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

SEC Proposes Amendments to Reduce Burdens in Reporting of Fund Portfolio Holdings

The U.S. Securities and Exchange Commission (“SEC”) proposed amendments to Form N‑PORT aimed at reducing reporting burdens for registered investment companies while preserving the usefulness of portfolio data for regulators and the public.  The proposal would give funds an extra 15 days to file monthly reports, reduce public disclosure frequency from monthly to quarterly to mitigate risks such as predatory trading, streamline or remove certain reporting items, including eliminating “Names Rule” disclosures, and add information relevant to exchange‑traded fund share classes.  The SEC is also separately extending compliance dates for existing Names Rule–related Form N‑PORT requirements to allow additional time for review and to prevent unnecessary compliance costs, with new deadlines set for Nov. 17, 2027 (for larger fund groups) and May 18, 2028 (for smaller ones).  The proposed changes are in line with Chairman Atkins’ goals of reducing reporting burdens and increasing efficiency in disclosure requirements.  Read more here.

FDIC Releases Economic Scenarios for

2026 Stress Testing

The Federal Deposit Insurance Corporation (FDIC) released the hypothetical economic scenarios for use in the upcoming stress tests for covered institutions with total consolidated assets of more than $250 billion.  The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 requires certain financial companies, including certain state non-member banks and state savings associations, to conduct stress tests.  The FDIC coordinated with the Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency in developing and distributing these scenarios.  Read more here.

Survey: 94% of Organizations Lack the

Talent to Complete Priority Projects

A study by Robert Half finds businesses are entering 2026 facing widening skills gaps and increasing hiring complexity, according to new research from talent solutions and business.  Of the 2,000 hiring managers surveyed, nearly two-thirds (62%) said skills gaps are more pronounced than one year ago, and just 6% reported having the talent they need to complete high-priority projects.  Despite these gaps, employers are optimistic about the year ahead.  More than 8 in 10 managers said they are confident in their business outlook for 2026, and of those, 43% said that they expect strong company growth.  In addition, 60% said they plan to add permanent staff in the first half of 2026, and 55% said they expect to increase contract hiring to support immediate needs.  Artificial intelligence (“AI”) also is impacting hiring practices.  Nearly two-thirds of managers (65%) said hiring has become harder due to the rise in AI-generated applications, and 58% reported greater difficulty identifying truly qualified candidates compared to one year ago. Read more here.

FCA Ban and Fines against a Reckless Adviser and

Fund Manager Upheld by Tribunal

An Upper Tribunal upheld the Financial Conduct Authority’s (“FCA”) decision to issue industry bans and financial penalties against two senior figures for recklessly exposing pension holders to unsuitable, high-risk investments.  The case involved the transfer of over 230 pension funds worth more than £10 million into portfolios heavily concentrated in a single offshore property project, despite these investments being inappropriate for the customers’ risk profiles.  The individuals responsible misrepresented these portfolios as low- or medium-risk, applied misleading labels such as “cautious” and “balanced,” and failed to cooperate with the regulator’s investigation.  The misconduct led to the collapse of the firms involved, intervention by the FCA to halt their pension activities, and more than £1.4 million in compensation paid out so far by the Financial Services Compensation Scheme.  The Tribunal supported the FCA’s assessment that this conduct demonstrated disregard for client interests and validated the bans and fines as appropriate regulatory action.  Read more here.

ESMA Seeks Input to Streamline and

Simplify its Market Abuse Guidelines

The European Securities and Markets Authority (“ESMA”) launched a consultation proposing amendments to its Market Abuse Regulation guidelines on the delay in the disclosure of inside information.  The proposals align the guidelines with the disclosure regime as amended by the Listing Act, ensuring issuers face fewer administrative burdens while benefiting from clearer requirements.  From June 2026, issuers will no longer be required to immediately disclose inside information related to protracted processes before their completion.  As a result, ESMA is proposing to remove from the current guidelines the legitimate interests for delayed disclosure connected to such protracted processes.  Read more here.

ESMA Supports Simplification of

European Sustainability Reporting Standards

ESMA has delivered its opinion on the draft revised European Sustainability Reporting Standards (“ESRS”) developed by the European Financial Reporting Advisory Group (“EFRAG”).  ESMA strongly supports the European Commission’s goal of enhancing competitiveness and growth through simplification and burden reduction.  On this basis, ESMA welcomes EFRAG’s proposed changes to the ESRS and finds room for specific modifications.  Read more here.

📣 WEBINAR ANNOUCEMENT 📣

COMPLIANCE ANONYMOUS

FiSolve's next Compliance Anonymous session is set for 12 PM ET on February 25. This confidential forum brings together legal, compliance, and operations professionals to openly discuss real-world challenges without attribution or judgment.  Participation is free, but to ensure meaningful engagement, seating is limited. Reserve your spot here. 

💡FiSolve's Negotiation Tip of the Week💡

Responding to Low Ball Offers

When hit with an aggressive lowball offer, whether it is a valuation for an M&A deal or a fee structure for a new mandate, resist the urge to immediately counter.  Doing so validates their "anchor" and drags you into their basement.  Instead, employ strategic curiosity to put the burden of proof back on them; ask a calibrated question like, "I'm curious, what specific market comps or risk-adjusted metrics led you to this figure?"  This forces the other party to defend a likely indefensible position and signals that you are making decisions based on data, not desperation. By maintaining a calm, analytical posture, you signal that the "price discovery" phase is over and that any serious movement must begin with a more realistic baseline.

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