FiSolve Weekly News Digest: March 6, 2026

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

SEC Adopts Final Rules for the

Holding Foreign Insiders Accountable Act

The U.S. Securities and Exchange Commission adopted final rule and form amendments implementing the recently enacted Holding Foreign Insiders Accountable Act (HFIA).  This rule now extends Section 16(a) of the Exchange Act to require directors and officers of foreign private issuers (FPIs) with SEC-registered equity to electronically disclose their equity holdings and transactions in English, aligning their reporting obligations with those of U.S. issuers while still exempting beneficial owners of more than 10 % from Section 16(a) requirements.  The changes remove the prior blanket exemption under Rule 3a12-3, revise Rule 16a-2 and related reporting forms to reflect the HFIA’s mandate, and become effective with filings due beginning March 18, 2026, as required by statute.  Read more here.

FINRA Censures and Sanctions Firm $1.3 Million for Best Execution and Supervisory Failures

A financial services firm settled with FINRA after the regulator found that, from at least 2017 through 2025, the firm failed to conduct reasonable, regular, and rigorous reviews of execution quality, routing customer orders to market centers that paid for order flow and later to an affiliated venue without adequately comparing execution quality to alternative markets.  The firm also reviewed only limited execution quality factors, focusing on price improvement while neglecting other relevant metrics, and did not reasonably account for differences in order types or sizes.  Additionally, the firm failed to maintain a supervisory system and written supervisory procedures reasonably designed to ensure compliance with its best execution obligations.  These failures resulted in violations of FINRA Rules 5310, 3110, and 2010.  As part of the settlement, the firm was censured, fined $1.3 million, and required to certify that it implemented a supervisory system to remediate the identified issues.  Read more here.

Optimistic Hiring Predictions for the

Financial Services Industry

A report by Sanderson highlights an increasingly optimistic outlook for financial services hiring in 2026, driven by renewed business confidence, a 12% rise in vacancies, and strong indications that 55% of firms plan to expand their workforce, with a particular focus on AI and digital transformation capabilities.  It notes that major banks are restarting long postponed modernization initiatives, fueling demand for senior leadership, technology, and change management professionals.  The industry is also expected to see steadier market conditions supported by regional fintech investment and strategic workforce shifts.  Additionally, the report anticipates a resurgence of DEI programs as firms transition from reactive to more deliberate, strategically aligned hiring practices throughout 2026.  Read more here.

FINRA Raises Gifts Rule Limit to $300,

But Lower Limits Still Apply Under Other Rules

The SEC has approved FINRA’s adopted rule change updating its Gifts Rule (Rule 3220), raising the general gift limit from $100 to $300 per person per year, while still keeping lower limits in place for certain categories (e.g., ERISA plan fiduciaries), which remain subject to stricter thresholds and conditions.  The change also gives FINRA authority to grant exceptions and formally incorporates long‑standing guidance on how gifts should be valued, when multiple gifts must be added together, and how to treat personal gifts, bereavement gifts, business‑entertainment‑related gifts, and disaster‑related charitable donations.  Related non‑cash compensation rules were updated to stay consistent. Overall, the adopted change is meant to modernize the rule, clarify expectations, reduce unnecessary compliance burdens, and continue protecting investors.  Read more here.

CFTC Enforcement Division Issues

Prediction Markets Advisory

The Commodity Futures Trading Commission’s Division of Enforcement issued an advisory following public release of two enforcement cases involving misuse of nonpublic information and fraud with respect to certain prediction markets, also known as event contracts, traded on KalshiEX, a Designated Contract Market.  The Advisory notes that in appropriate cases, the Division will investigate and prosecute violations.  Read more here.

Federal Indictment Charges Investment Advisor with Defrauding Financial Services Companies of $3.3. Million

The Department of Justice charged an investment advisor who allegedly executed a series of deceptive financial maneuvers designed to divert approximately $3.3 million from multiple financial services companies.  The adviser defrauded three financial services companies by taking advantage of credit extended by the financial services companies and exploiting the delay in time from when he initiated Automated Clearing House (“ACH”) fund transfers, also known as electronic fund transfers or “EFTs,” between his personal bank accounts and his personal brokerage accounts, to the time when the transactions were posted and cleared by the financial services companies.  These actions, which were presented to counterparties as legitimate investment or operational movements, were allegedly used to mask the diversion of capital for unauthorized purposes, leading to substantial losses for the affected firms and prompting federal intervention.  Read more here.

ESMA Report Finds Reduction in Fund Costs

The European Securities and Markets Authority (ESMA) published its 2025 market report on the costs and performance of EU retail investment products.  The report shows that ongoing costs in the EU continued to decline in 2024. This is, however, mostly due to new investment funds entering the market, which typically charge lower fees.  Cost reductions for long-standing funds remained more limited.  Read more here.

📣 WEBINAR ANNOUCEMENT 📣

Culture and Talent Considerations

in the Financial Services Industry 

FiSolve’s Debi Yadegari will be joined by experts Tabitha Albright, Andrea Colabella, and Susi Shaw to discuss culture and talent considerations in the financial services industry.  With competition for top talent intensifying and firms navigating rapid industry change, our expert panel will break down what leaders need to know right now to build, manage, and retain strong teams.  There is no cost to attend this event.  Learn more about the webinar and reserve your spot today here.

💡FiSolve's Negotiation Tip of the Week💡

Conflict Management within a Team

When conflict emerges within a team, cut through positional back and forth by having each person state two things clearly: the specific risk they see and the data supporting their view. This shifts the discussion from personalities to verifiable facts. Then, define a single decision criterion tied to the business goal, for example client impact, risk exposure, or cost efficiency.  Then evaluate all proposals against it.  By anchoring the conversation in evidence and an agreed upon metric, you reduce unproductive debate, you reduce ego-driven standoffs, you keep discussions focused, and you move the team toward a better decision for your organization and its clients in a faster and more effective fashion.

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