FiSolve Weekly News Digest: May 15, 2026

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

Newly Appointed SEC Enforcement Director

Outlines Division Priorities

SEC Enforcement Director David Woodcock outlined a “back to basics” approach focused on protecting investors and market integrity through high impact, evidence driven cases rather than high case volume. Director Woodcock emphasized prioritizing core misconduct, such as offering frauds, financial reporting abuses, insider trading, and market manipulation, while maintaining strong oversight of private funds, including risks around fees, valuations, conflicts, and retail exposure. Director Woodcock highlighted growing attention to cross border fraud and stressed enhanced coordination with domestic and international regulators to address increasingly complex schemes. The Director also underscored the importance of cooperation and early engagement from firms under investigation, noting that the SEC will differentiate between good faith errors and harmful misconduct, rewarding self-reporting and remediation, while pursuing accountability for serious violations in an effort to sustain confidence in U.S. capital markets. Read more here.

FINRA Announces Initiative Designed for Early Resolution

In a recent blog post titled “Expanding Rapid Remediation—A FINRA Forward Initiative to Resolve More Issues Earlier” FINRA described its efforts to broaden its Rapid Remediation program to identify and fix compliance problems at member firms more quickly and proactively, before they escalate into larger risks. It emphasizes that, because FINRA monitors vast amounts of market activity, it can detect patterns or minor issues (often unintentional ones) that firms are encouraged to correct promptly through collaboration rather than formal enforcement. The expanded approach focuses on early engagement. This is especially encouraged during periods of new or evolving reporting requirements when errors are more common, allowing firms to remediate issues efficiently, improve compliance systems, and reduce investor harm. FINRA believes the initiative reflects a shift toward a more preventative, cooperative regulatory model that prioritizes swift correction and better outcomes over lengthy investigations. Read more here.

Report: Tightening Talent Market Reshapes

Financial Services in 2026

The Selby Jennings 2026 USA Financial Services Talent Report highlights a workforce that is confident, mobile, and increasingly selective, creating stronger competition for talent across the industry. Many professionals report receiving salary increases and bonuses, yet dissatisfaction persists as expectations continue to rise beyond compensation alone. Firms face growing challenges as senior employees retire and mid-level professionals are promoted more quickly into leadership roles, creating capability gaps that must be addressed through hiring and development. Flexible working arrangements remains important to employees, though remote options are tightening and contributing to evolving employee expectations. At the same time, advances in AI and automation are forcing organizations to rethink roles, skills, and value propositions in order to retain talent and remain competitive. Read more here.

CFTC Reaffirms Exclusive Jurisdiction Over

Prediction Markets in Amicus Brief

The Commodity Futures Trading Commission filed an amicus brief in the U.S. Court of Appeals for the Sixth Circuit asserting the CFTC’s exclusive jurisdiction over prediction markets. The brief was filed in KalshiEx LLC v. Matthew T. Schuler, et al. The filing represents another step in the CFTC’s broader effort to protect its jurisdiction over prediction markets from an ongoing campaign of state encroachment. The amicus brief outlines the CFTC’s position that the comprehensive regulatory scheme designed by Congress, preempts state laws as applied to CFTC-regulated markets. The CFTC has previously filed lawsuits against Arizona, Connecticut, Illinois, New York, and Wisconsin, and secured a preliminary injunction against state regulation of CFTC-regulated prediction markets in Arizona. The CFTC has also filed amicus briefs in the U.S. Court of Appeals for the Ninth Circuit and the Supreme Judicial Court of Massachusetts. Read more here.

Q1 2026 AI Funding Exceeds 2025 Total with

3 Deals Accounting for 67% of Capital

Artificial Intelligence (AI) startups raised $255.5 billion globally in Q1 2026, surpassing the 2025 full-year total for AI venture funding, according to PitchBook’s latest AI VC Trends report. But three deals accounted for two-thirds (or $172 billion) of that capital. Of the 1,546 deals recorded in Q1 2026, deals from OpenAI, Anthropic and xAI accounted for 67.3%. The remaining $83.5 billion was split across 1,543 deals. Read more here.

ESMA Identifies Areas for

Further Supervisory Convergence

The European Securities and Markets Authority (ESMA) published the results of its 2025 Common Supervisory Action (CSA) on the compliance and internal audit functions of fund managers, carried out in with the participation of all EU and EEA national supervisors. The EU-wide review found that most fund managers comply with key requirements under the AIFMD and UCITS framework. At the same time, the CSA identified governance weaknesses, particularly in the independence of control functions, the quality and implementation of internal policies, and the way senior management and boards exercise oversight. While most entities had relevant policies and procedures in place, national competent authorities (NCAs) observed significant differences in their quality and practical implementation, notably depending on the size, nature and complexity of market participants concerned. ESMA encourages NCAs to follow up on the breaches and vulnerabilities identified, to better understand their root causes and to ensure that effective remedial actions are implemented in a timely manner. The report also sets out examples of good and poor practices identified across the compliance and internal audit functions, highlighting where controls were effective and where further strengthening is needed. Read more here.

💡FiSolve's Negotiation Tip of the Week💡

Using Humor Constructively

Use humor as a tool, not a distraction, to build rapport and diffuse tension without undermining credibility. In high-stakes financial services negotiations, a well-timed, light remark can signal confidence, humanize rigid positions, and create a momentary reset when discussions stall (especially around regulatory interpretations or risk allocation). Keep humor relevant, brief, and inclusive—avoid sarcasm, inside jokes, or anything that could be perceived as minimizing compliance concerns. Self-deprecating humor is often safest, as it lowers defensiveness without targeting others, while aligning your tone with the seriousness of the subject matter. When used thoughtfully, humor can shift the dynamic from adversarial to collaborative, helping parties re-engage with problem-solving while preserving professionalism and trust.

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