FiSolve Weekly News Digest: October 24, 2025

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

Federal Government Shutdown Continues

As the government shutdown is heading towards a fourth week, there is no indication of an imminent resolution.  As a reminder the U.S. Securities and Exchange Commission published its Operational Plan during the shutdown and many of the SEC’s Divisions have provided guidance specific to their function.  You may access these materials from the SEC’s home page here.  Other agencies have published guidance as well. 

FINRA Fines and Censures Firm for

Lack of Reg BI Procedures

FINRA fined a broker-dealer firm $25,000 and censured it for its failure to establish and maintain written policies and procedures, and a supervisory system, reasonably designed to achieve compliance with Regulation Best Interest (“Reg BI”).  As part of its Letter of Acceptance, Waiver, and Consent, the firm has agreed to an undertaking to certify it has remediated the issues and implemented a supervisory system, and written policies and procedures are reasonably designed to achieve compliance with Reg Bl.  Read more here.

AI Boosts Perceived Time Savings—But True Benefit Requires Strong Leadership

According to The Adecco Group’s sixth annual Global Workforce of the Future report, AI adoption is accelerating rapidly, with 71% of employees now unimpeded in its use—up from just 19% in 2024.  Surveying 37,500 workers across 31 countries, the study finds that staff believe AI tools save them about two hours per day, yet a third report merely reallocating that time to mundane tasks rather than higher-value work.  Despite broad optimism—76% anticipate AI creating new jobs and 70% expect role rearchitecting—23% fear job loss. Crucially, the research highlights that organizational strategy, clear purpose, ethical governance, continuous upskilling, and trust are essential for translating perceived efficiency into real business impact.  “Future-ready” employees—who are supported with measurable goals and skill development—also exhibit higher trust in AI, underscoring the importance of a human-centric approach to realizing AI’s full potential.  Read more here.

FinCEN Issues FAQs to Clarify Suspicious Activity Reporting Requirements

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued answers to four Frequently Asked Questions (“FAQs”) to clarify certain requirements related to suspicious activity reports (“SARs”).  The FAQs are intended to ensure financial institutions are not needlessly expending resources on efforts that do not provide law enforcement and national security agencies with the critical information they need to detect, combat, and deter criminal activity.   The four new FAQs provide AML compliance officers for covered financial institutions more discretion in the decision-making process for filing SARs.  Read more here.

Survey Finds High Level of Trust in the Investment Industry, Key to Retention is Combining Trust with Technology

The 2025 VISTA study, a collaboration between SIFMA and KPMG surveying over 2,000 U.S. investors, reveals robust industry benchmarks—80% satisfaction and 70% trust in financial services, with advisor-supported satisfaction nearing 90% (91% among Baby Boomers). Yet stark generational differences are emerging: Gen Z investors now trust and report satisfaction more with self-directed platforms (64% trust; 77% satisfaction) than with advisors (63% trust; 72% satisfaction), and they prioritize transparency and digital capabilities at four to seven times the level of Boomers.  Crucially, Gen Z is 2.5–4 times more likely to switch providers for superior digital tools, underscoring the risk of client attrition.  Executives should view this as a clear mandate: preserve the trust of traditional advisory while investing aggressively in digital transparency and tech-enabled interfaces and pursue hybrid advisory models that seamlessly integrate human expertise with self-directed channels to win and retain next-generation wealth.  Access the study here.

Upcoming FiSolve Webinar: Navigating the Future: Trends in Investment Product Launches

On Wednesday, October 29, 12 PM ET, FiSolve will bring together industry experts to explore current trends and strategic considerations in launching investment products such as hedge funds, ETFs, interval funds, CITs and SMAs. The session covers (1) Market data and launch trends across product types, (2) the growing role of series trusts in streamlining product development, (3) innovations in structure and strategy, including hybrid products and AI-driven solutions, and (4) distribution considerations.  It is free to attend.  Register here. 

FiSolve and Eversheds Sutherland to Host AI Roundtable

FiSolve and Eversheds Sutherland will be hosting a roundtable on Navigating Artificial Intelligence (AI) in the Investment Services Industry.  This in-person event is scheduled for 8:15 AM – 10:00 AM in New York City on November 13, 2025.  Please contact us at info@FiSolve.com if you are interested in attending the event.

‼️FiSolve's Negotiation Tip of the Week‼️

Mere Exposure

For professionals in the financial services industry, leveraging the mere exposure effect—a psychological phenomenon where people tend to develop a preference for things merely because they are familiar—can be a powerful negotiation tool.  By consistently and subtly exposing stakeholders to your ideas, proposals, or even your personal brand through repeated, low-pressure interactions (e.g., brief emails, shared articles, or casual meetings), you increase their comfort and receptiveness over time.  This familiarity breeds trust and reduces resistance, making it more likely that your counterpart will view your position favorably when formal negotiations begin.  The key is to build recognition without overwhelming, creating a sense of ease and alignment before any critical decisions are made by the other party.

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