FiSolve Weekly News Digest: November 13, 2026

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

SEC Announces Enforcement Annual Results

for Fiscal Year 2026

The U.S. Securities and Exchange Commission reported that its enforcement program filed 348 enforcement actions in fiscal year 2026, obtained more than $1.09 billion in monetary remedies, and returned approximately $731 million to over 250,000 harmed investors, while emphasizing a strategic shift toward pursuing more serious and consequential violations rather than maximizing case volume. The agency highlighted significant actions involving fraud, market manipulation, insider trading, financial reporting misconduct, private fund and investment adviser violations, and cross-border schemes, with approximately two-thirds of standalone cases charging at least one individual. The SEC also detailed major organizational initiatives designed to strengthen future enforcement efforts, including creation of the Retail Fraud Working Group, the Financial Reporting and Accounting Unit, and the Office of Super Intelligence and Analytics, reflecting an increased focus on retail investor protection, private markets oversight, emerging technologies, and data-driven investigations. The accompanying addendum underscores the Division’s commitment to modernizing its investigative capabilities, prioritizing matters with the greatest investor impact, promoting accountability among gatekeepers and senior executives, and encouraging cooperation and remediation, while the agency's whistleblower program remained a significant source of leads, generating approximately 26,000 tips and more than $158 million in awards during the year. Read more here.

SEC Enforcement Director Outlines Modernized Enforcement Strategy, Including New Super

Intelligence & Analytics Office

In remarks at the 26th Annual A.A. Sommer Lecture, David Woodcock, Director of the SEC's Division of Enforcement, emphasized that the agency is prioritizing the long-term effectiveness of its enforcement program over raw case statistics, focusing on investor protection, market integrity, and individual accountability. Director Woodcock highlighted several recent initiatives, including a new Financial Reporting and Accounting Unit, a Retail Fraud Working Group, enhanced trial capabilities, and greater cross-border coordination. Notably, Director Woodcock discussed the SEC's newly created Office of Super Intelligence & Analytics, which will integrate advanced analytical and artificial intelligence-driven tools into investigations to help identify patterns, review large volumes of documents, trace financial flows, and combat emerging AI-enabled fraud and market manipulation schemes. Director Woodcock stressed that these technologies are intended to augment, rather than replace, human judgment, enabling enforcement staff to detect misconduct more quickly and respond more effectively to evolving risks in the capital markets. Read more here.

What the 2026 Midterms Mean for Business

PwC reports that the 2026 midterm elections resulted in Democratic control of both the House and Senate, creating a divided government that is likely to increase congressional oversight while limiting the passage of major legislation due to presidential veto power. The report suggests that businesses should expect continued policy activity through executive actions, agency rulemaking, investigations, and hearings rather than sweeping legislative change. Key areas of focus include AI governance, cybersecurity, tax policy, trade, energy infrastructure, and regulatory compliance, with companies facing heightened scrutiny from both federal and state policymakers. The report advises business leaders to prioritize regulatory readiness, strengthen compliance and risk management programs, invest in technology and AI governance, and remain agile amid ongoing geopolitical uncertainty, supply chain pressures, and evolving regulatory expectations. Read more here.

CFTC Sanctions Eight Individuals for Unregistered Foreign Broker Solicitation Activities

The Commodity Futures Trading Commission (CFTC) imposed sanctions on eight individuals who acted as unregistered associated persons of unregistered foreign introducing brokers that solicited U.S. retail customers for off-exchange leveraged or margined retail foreign currency and commodity transactions. According to the CFTC, the individuals solicited customers who were not eligible contract participants without the required registration, violating federal commodities laws. As part of the settlements, the respondents agreed to cease and desist from further violations and are barred for two years from registering with the CFTC or working for a CFTC registrant. The orders also recognize penalties imposed in related Securities and Exchange Commission (SEC) proceedings arising from the same conduct. This matter is connected to an earlier CFTC enforcement action involving the facilitation of illegal off-exchange commodity transactions with U.S. customers. Read more here.

SEC Bars Former Hedge Fund Manager

Following Spoofing Fraud Conviction

The U.S. Securities and Exchange Commission barred the former principal of a hedge fund and its affiliated exempt reporting adviser after the individual was convicted in connection with a fraudulent trading scheme involving spoofing. According to the SEC order, the respondent placed thousands of orders for ADR securities with no intention of executing them, creating false impressions of market supply and demand to manipulate prices and profit from resulting price movements. The conduct allegedly generated more than $1.3 million in illicit gains and led to both a civil injunction and a criminal conviction for securities fraud-related violations. The criminal resolution included probation, home confinement, a monetary fine, community service, and forfeiture of approximately $1.347 million. Based on this misconduct, the SEC imposed a broad industry bar. Read more here.

CISA Enhances Cyber Incident Reporting to Improve Threat Detection and Response

The Cybersecurity and Infrastructure Security Agency (CISA) has updated its cyber incident reporting form to improve the identification of related cyber threats and shared risks across organizations. The revised form replaces “Activity Type” with “Incident Type,” expanding reporting categories to include malware, social engineering, hacking techniques, and insider threats. It also introduces a new “Tactics, Techniques and Procedures” section aligned with the MITRE ATT&CK Framework, enabling organizations to report activities such as reconnaissance, credential access, lateral movement, privilege escalation, and data exfiltration. CISA noted that more detailed and standardized reporting will enhance its ability to analyze incidents, coordinate response efforts, and strengthen national cyber defense. While reporting remains mandatory for federal agencies, all organizations are encouraged to voluntarily report cyber incidents to help improve collective visibility into the evolving threat landscape. Read more here.

AI Continues to Drive Venture Valuations

Despite Weak Exit Environment

PitchBook's Q3 2026 US VC Valuations Report finds that U.S. venture capital valuations continued to climb even amid elevated interest rates, limited liquidity, and a challenging macroeconomic backdrop, with artificial intelligence serving as the primary driver of investor enthusiasm. Median Series A pre-money valuations reached $58.7 million, nearly 2.8 times their 2020 level, while AI companies significantly outpaced non-AI peers in valuation step-ups between funding rounds. However, the report highlights a growing disconnect between private-market valuations and exit activity: only 18 companies completed IPOs in Q3, median public listing valuations declined 17%, and several high-profile private companies accepted exit valuations far below prior funding marks. The report concludes that while AI-driven capital formation continues to support elevated venture valuations, persistent liquidity constraints and higher interest rates could pressure exit opportunities and venture returns heading into 2027. Read more here.

FCA Proposes Greater Investment Flexibility for Workplace Pension Funds

The UK Financial Conduct Authority (FCA) is proposing changes that would allow regulated workplace pension providers to exclude certain performance-linked investment fees from the pension charge cap, providing greater flexibility to invest in private markets, including private equity, venture capital and private credit. The objective is to expand access to long-term investment opportunities and potentially improve returns and value for pension savers. However, the FCA emphasizes that this flexibility must not become an excuse for higher costs, proposing safeguards around fee transparency, fair allocation of charges, investment valuations and independent oversight to ensure fees are justified by value delivered. The proposal would align FCA-regulated workplace pension schemes more closely with trust-based pension schemes, which have had similar flexibility since 2023. The consultation closes on January 14, 2027, with final rules expected in summer 2027. Read more here.

FiSolve Announces its Next

Compliance Anonymous Session

FiSolve's next Compliance Anonymous session is scheduled for 12 PM ET on December 2. 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.

📢 WEBINAR ANNOUCEMENT 📢

Inside the SEC's 2027 Examination Priorities

On November 17th at 12pm ET, join Steven Yadegari and a panel of experts, David Campbell, Davie Baccei and Ziggy Kozelsky discuss the SEC's 2027 Examination Priorities. Our program will highlight several areas that financial services firms should be evaluating now, from cybersecurity and AI governance to outsourcing oversight and compliance program effectiveness. There is no cost to attend this webinar. Register here.

💡FiSolve's Negotiation Tip of the Week💡

Staying the Course

In negotiations, especially in the financial services industry, one of the most effective practices is staying the course when your core objectives remain valid. Counterparties will often test deadlines, pricing assumptions, service levels, fee arrangements, indemnification provisions, or governance terms in hopes of creating negotiation fatigue and securing incremental concessions. Experienced negotiators distinguish between flexibility on tactics and consistency on principles. Before entering discussions, identify your non-negotiables and the business rationale behind them, then revisit those criteria throughout the process rather than reacting to short-term pressure or the desire to simply get the deal done. Whether negotiating an advisory agreement, fund administration contract, custody relationship, or strategic partnership, maintaining a steady, fact-based position often conveys confidence, strengthens credibility, and ultimately produces better outcomes than making unnecessary concessions late in the process.

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