FiSolve Weekly News Digest: October 23, 2026

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

SEC Encourages Responsible Retailization and Proactive AI Adoption by Investment Advisers

In remarks at the Stanford University Private Capital Roundtable, Brian Daly, Director, Division of Investment Management, outlined the U.S. Securities and Exchange Commission’s (SEC) “responsible retailization” initiative, which seeks to expand retail investor access to private market and alternative investment opportunities through a framework built on access, transparency, and incentives, while maintaining robust investor protections and fiduciary oversight. A notable portion of the speech focused on artificial intelligence, where Director Daly emphasized that the SEC’s principles-based fiduciary framework is sufficiently flexible to accommodate AI innovation and urged investment advisers not to delay adoption while awaiting detailed regulatory guidance. Director Daly stated that advisers should innovate thoughtfully and responsibly, warning that waiting for regulators to “hold your hands” may result in guidance that is “too limited and too late.” At the same time, he encouraged firms to engage directly with the SEC if existing rules or staff positions are creating genuine obstacles to AI deployment, underscoring the agency’s pro-innovation stance and expectation that advisers proactively address AI governance, risk management, and fiduciary considerations rather than treating the absence of specific SEC guidance as a reason for inaction. Read more here.

Broker Petitions U.S. Supreme Court to Consider Constitutional Challenges to FINRA Proceedings

A broker disciplined by FINRA has petitioned the U.S. Supreme Court to review a decision holding that his constitutional objections to FINRA's disciplinary process could not be considered because they were not first raised before the SEC. The petition stems from Smith v. SEC, where the Sixth Circuit concluded that federal securities laws generally require parties to present their arguments to the SEC before seeking judicial review, even though the court acknowledged that the broker's constitutional claims may have merit in light of SEC v. Jarkesy. The broker argues that requiring him to present those arguments to the SEC was futile and asks the Supreme Court to clarify whether constitutional challenges to the structure and legality of FINRA disciplinary proceedings must be exhausted before the SEC or may be raised directly in federal court. Read more here.

Hiring Slows as the Labor Market Cools

According to the October 2026 Workforce Report from iCIMS, the U.S. labor market showed signs of cooling heading into the fall, with hiring activity falling 7% below the September 2025 baseline, job openings moderating, and application volumes also declining. The report found that all three key recruiting indicators moved in the same downward direction for the first time this year, suggesting employers have become increasingly cautious about adding headcount. While hiring remains selective, the data indicates that recruiting conditions may be gradually becoming more favorable for employers after several years of intense competition for talent. For financial services firms, the trend could ease some recruitment pressures in specialized areas such as compliance, risk, operations, and technology, although competition for highly skilled professionals is likely to remain significant. Read more here.

SEC Announces Roundtable on Machine-Understandable Data in the Age of Super Intelligence

The Securities and Exchange Commission (SEC) announced that it will host a roundtable on November 9, 2026, to discuss the use of machine-understandable data and Super Intelligence (SI) and related risks and costs. The program will feature panel discussions exploring how market participants use SI and machine understandable data, the associated risks and costs, and ways the SEC can further support and enhance the use of these technologies. Read more here.

FCA Urges Responsible AI Adoption as

Finance Moves Toward an Agentic Future

In a speech at the Bloomberg UK Policy Series, Jessica Rusu, the Financial Conduct Authority (FCA)'s chief data, information and intelligence officer, emphasized that artificial intelligence is already transforming financial services and that the UK should seek to lead in its safe and responsible adoption. She highlighted the FCA's implementation of recommendations from the Mills Review, the growing use of AI across financial services, and the emergence of “agentic finance,” where AI systems increasingly act on behalf of consumers. Rusu stressed that firms deploying AI must prioritize consumer outcomes, maintain clear accountability and governance structures, and build strong operational resilience, including planning for AI failures and cyber risks. She also warned that consumers are increasingly relying on general-purpose AI tools for financial information without understanding the limits of regulatory protections, prompting the FCA to call for clearer disclosures from AI providers. Finally, she outlined how the FCA itself is becoming a more technology-enabled regulator, using AI to enhance supervision, market oversight, anti-money laundering monitoring, and data collection while working with industry to develop safeguards that support innovation and consumer protection as AI capabilities continue to advance. Read more here.

SEC and AMF Announce Supervisory MOU To Enhance Cooperation for Investment Advisers and

Investment Service Providers

The U.S. Securities and Exchange Commission (SEC) and the French Autorité des Marchés Financiers (AMF) announced that they have entered into a Memorandum of Understanding (MOU) designed to facilitate consultation and information-sharing in the supervision of certain investment advisers and investment companies regulated by the SEC and investment service providers supervised by the AMF. The MOU establishes a comprehensive framework for consultation, cooperation, and the exchange of information between the SEC and the AMF in connection with investment service providers, investment advisers, and investment companies that operate in the U.S. and in France and are overseen by either the SEC or the AMF. Read more here.

Central Bank of Ireland Fines Coinbase Ireland for Safeguarding and Outsourcing Failures

The Central Bank of Ireland fined Coinbase Ireland Limited €3.25 million following findings that the firm breached safeguarding and outsourcing requirements under Ireland’s Electronic Money Regulations between November 2020 and August 2025. The regulator determined that the firm relied excessively on group entities in the United States for key safeguarding functions, lacked sufficient local expertise and oversight, failed to maintain adequate controls to ensure customer funds were properly safeguarded, and did not have appropriate governance and escalation procedures for reporting material safeguarding issues. While the Central Bank concluded that customer-fund protection and regulatory governance standards had been compromised, Coinbase Ireland admitted the violations and agreed to a settlement that included a reprimand and a discounted monetary penalty. The enforcement action underscores regulators’ continued focus on outsourcing oversight, operational resilience, and the protection of client assets, particularly among payments, e-money, and digital asset firms operating within the EU framework. Read more here.

📣 WEBINAR ANNOUCEMENT 📣

COMPLIANCE ANONYMOUS

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.

💡FiSolve's Negotiation Tip of the Week💡

Dealing with Coercion

Effective negotiators understand the difference between persuasion and coercion. Coercion occurs when a party attempts to force agreement through threats, artificial deadlines, intimidation, withholding critical information, or implying adverse consequences if demands are not met. In the financial services industry, coercive tactics often surface during regulatory examinations, vendor negotiations, fund raises, strategic transactions, or contentious client discussions where one side believes it holds disproportionate leverage. To assess whether coercion is at play, ask whether the pressure is grounded in objective business realities or is designed to limit your ability to evaluate alternatives and make an informed decision. When faced with coercion, resist the urge to respond emotionally or reciprocate with threats. Instead, slow the process down, request supporting facts, test assumptions, explore alternatives, and calmly reframe the discussion around mutual interests and objective criteria. The strongest response to coercion is often demonstrating that you have options, are prepared to walk away if necessary, and will make decisions based on data, governance requirements, and long-term business outcomes rather than pressure tactics.

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