FiSolve Weekly News Digest: October 3, 2025

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

SEC, CFTC and other Federal Agencies Part of Government Shutdown

The federal government officially shut down at midnight on October 1, 2025, resulting in the suspension of work for most non-essential government personnel.  In anticipation of such an event, many federal agencies had prepared contingency plans.  Notably, the U.S. Securities and Exchange Commission (SEC) released its Operations Plan Under a Lapse in Appropriations and Government Shutdown back in August, outlining how the agency would function during a shutdown. More recently, the SEC’s Divisions have issued specific action plans tailored to the current situation.  Access the SEC's plan here and the CFTC's recent order here.

FINRA Provides Update on its

Forward Rule Modernization Update

In a news blog this week titled “FINRA Forward’s Rule Modernization—An Update,” FINRA outlines the organization's ongoing efforts to modernize its regulatory framework in response to evolving market dynamics, technologies, and workplace models.  As part of the FINRA Forward initiative, the agency noted that it has expanded its traditional rule review process, issuing multiple notices to solicit public feedback on various aspects of its rulebook.  Key updates include proposals to simplify outside activity reporting, raise the annual gift limit to $300, and streamline rules for capital acquisition brokers to better support capital formation.  FINRA emphasizes the importance of stakeholder engagement in shaping effective, efficient regulations that protect investors while minimizing unnecessary burdens on firms.  Read more here.

Companies Finding Success with

Remote Work Arrangements

A survey commissioned by Akamai Technologies (NASDAQ: AKAM), and the Institute for Corporate Productivity (i4cp), reveals that remote-first workplaces are showing high rates of productivity.  According to the study, 83% of remote-friendly companies self-report high or very high productivity, with 62% citing "high" productivity and 21% reporting it as "very high."  72% cited access to a wider talent pool as their main reason for adopting remote-first models, followed by work-life balance (62%) and retention (31%).  Read more here.

SEC Division of Investment Management Approves State Trust Companies for Crypto Custody

Staff of the SEC’s Division of Investment Management issued a no-action letter (the “NAL”) stating that it would not recommend enforcement action to the SEC against registered advisers or regulated funds for maintaining crypto assets and related cash and cash equivalents with certain state-chartered financial institutions (“State Trust Companies”).  The guidance permits certain financial institutions to hold and manage cryptocurrencies such as Bitcoin and Ethereum in a manner comparable to traditional cash holdings.  State trust companies are required to establish robust procedures to safeguard digital assets, while advisers and fund managers must conduct thorough due diligence to ensure the protection of client interests.  Read more here.

FCA Director of Consumer Investments Outlines Regulatory Perspective and Priorities

The Financial Conduct Authority’s (FCA) Director of Consumer Investments outlined the FCA’s strategic vision for the coming year, emphasizing a balanced approach to regulation that supports innovation, growth, and consumer protection.  This includes a commitment to being a proportionate, predictable, and purposeful regulator, aiming to deepen trust in financial services while rebalancing risk to unlock economic potential.  Key priorities include enhancing transparency, tackling financial crime, and leveraging data and technology to improve regulatory efficiency.  The speech underscores the FCA’s role in fostering a resilient financial ecosystem that benefits both firms and consumers.  Read more here.

ETFS Seeing Outsized Inflows

Citing FactSet, the Wall Street Journal reports U.S.-listed Exchange Traded Funds (ETFs) have taken in a net $917 billion through Sept. 29.  If that pace holds during the fourth quarter, when inflows tend to pick up, it will be the market’s second straight record year. In 2024, ETFs added $1.1 trillion.  The article also notes a new regulatory development could be the next major tailwind.  On Monday, the Securities and Exchange Commission said it intends to grant so-called exemptive relief to an adviser to offer funds with dual-share classes—meaning the adviser could add an ETF share class to an existing mutual fund.  Industry executives expect the SEC to approve other dual-share structures, potentially opening the floodgates for more money to swap from mutual funds to ETFs.  Read more here.

FiSolve to Host Compliance Anonymous on October 8

FiSolve's next Compliance Anonymous session is set for 12 PM ET on October 8. This confidential forum brings together legal, compliance, and operations professionals to openly discuss real-world challenges without attribution or judgment. Seats are limited, so please reserve your spot 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‼️

Active Listening

Do not underestimate the importance of listening in negotiation.  This allows a chance to gather critical information that may not be explicitly stated. By asking open-ended questions and attentively listening—without immediately reacting or formulating counterpoints—leaders can uncover underlying interests, motivations, and concerns that shape the other party’s position. This deeper insight enables more strategic responses, fosters trust, and often reveals creative solutions that meet both parties' needs.  In high-stakes environments like financial services, where precision and nuance matter, listening not only enhances understanding but also strengthens the foundation for long-term, productive relationships.

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