FiSolve Weekly News Digest: September 25, 2026

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

SEC EXAMS Focuses on Transparency,

Consistency, and Collaboration

In a recent speech delivered at the ICI’s Compliance, Risk, and Legal Conference, Keith Cassidy, Director of the SEC’s Division of Examinations (EXAMS), outlined the Division’s ongoing efforts to make the examination process more transparent, accessible, and integrated across the agency. The speech was delivered after EXAMS released a recent risk alert on annual reviews conducted by investment advisers (https://lnkd.in/p/gfhrCdEb). Director Cassidy emphasized EXAMS’ commitment to publishing annual priorities, issuing risk alerts, expanding industry outreach, improving communication during examinations, and strengthening coordination with other SEC divisions to provide more consistent regulatory guidance. Director Cassidy also announced the forthcoming release of an updated EXAMS brochure designed to help registrants better understand and prepare for examinations. At the same time, he encouraged firms to approach examinations as a collaborative process by being responsive, prepared, and professional, stressing that examinations are a routine and important component of maintaining investor protection, market integrity, and strong compliance cultures. Read more here.

SEC Action Highlights Fiduciary Duty, Due Diligence Failures in Registered Fund Liquidation

The SEC instituted settled administrative proceedings against a registered investment adviser and its chief executive arising from a fund liquidation strategy that involved exchanging the funds’ illiquid alternative assets for shares of a company that purported to provide liquidity solutions. According to the SEC, the respondents failed to adequately investigate significant warning signs identified during due diligence, disregarded internal concerns, and recommended the transaction despite not fully understanding key terms and risks. The strategy was intended to provide shareholders with liquidity and facilitate the funds’ liquidation, but after the counterparty became publicly traded through a SPAC transaction, its share price fell significantly, resulting in approximately $300 million in losses to the funds. The SEC found that the respondents breached their fiduciary duties and violated Section 206(2) of the Investment Advisers Act of 1940, leading to remedial sanctions and a cease-and-desist order. Read more here.

Financial Services Talent Trends: Compensation, Flexibility, and Retention Take Center Stage

According to the USA Financial Services Talent Report 2026 issued by Selby Jennings, the U.S. financial services industry is experiencing a period of growth and transformation alongside a highly competitive talent market, with professionals becoming more confident, mobile, and selective in their career decisions. The report finds that 62% of respondents received a salary increase during the past year, expectations for job changes remain elevated, and bonus participation has increased, although satisfaction with bonuses has not always kept pace with rising expectations. Flexible work arrangements continue to be a major factor in both recruitment and retention, with many professionals viewing workplace flexibility as a baseline expectation rather than a differentiator. The survey also highlights growing career mobility driven by a generational leadership transition, creating faster promotion opportunities and increasing demand for experienced talent. At the same time, approximately one-third of professionals report dissatisfaction with their current role, creating meaningful retention risks for employers. The report further notes that firms are balancing workforce changes with the continued adoption of AI and automation, requiring leaders to rethink hiring, compensation, succession planning, and employee engagement strategies in order to attract and retain top talent in an increasingly competitive market. Read more here.

SEC Sanctions Firm over Systems Security Failures

The U.S. Securities and Exchange Commission (SEC) announced a settled enforcement action against a regulated trading platform operator for longstanding failures to comply with Regulation Systems Compliance and Integrity (Regulation SCI). According to the SEC, the firm did not adequately establish, maintain, and enforce required written policies and procedures covering areas such as cybersecurity, access controls, vulnerability management, testing, and remediation, despite repeated examination findings identifying these deficiencies over many years. The SEC found that the company failed to promptly address the issues and did not maintain policies reasonably designed to ensure the reliability, security, and resilience of its systems. Without admitting or denying the findings, the firm agreed to a censure, a cease-and-desist order, and a $575,000 civil penalty. Read more here.

CFTC Releases Staff Advisory on Mention Markets

The U.S. Commodity Futures Trading Commission (CFTC) released a staff advisory cautioning prediction market operators that event contracts tied to an individual's statements, interactions, or attendance at specific events may present elevated risks of manipulation. The agency emphasized that platforms should implement appropriate controls and conduct thorough risk assessments before offering these markets. Read more here.

FINRA Orders Firm to Pay $1.2 Million in

Restitution and $400,000 in Fines for

UIT Supervision Failures, Customer Overpayments

FINRA sanctioned a firm for failing to reasonably supervise recommendations that customers sell unit investment trusts (UITs) before their maturity dates, which resulted in customers paying unnecessary costs and fees. FINRA found the firm failed to implement a system—including written policies and procedures— reasonably designed to supervise UIT recommendations for compliance with FINRA Rule 2111 (Suitability) and Regulation Best Interest’s Care Obligation. Read more here.

SEC Publishes Updated Market Statistics, Highlighting Increase in IPOs and Proceeds Raised

The U.S. Securities and Exchange Commission’s Division of Economic and Risk Analysis (DERA) published updated statistics and data visualizations covering key segments of the U.S. capital markets, including a notable increase in the number of initial public offerings (IPOs) and follow-on registered offerings. According to the agency, initial public offerings (IPOs) increased to 208 deals raising more than $137 billion, up from 180 IPOs that raised approximately $27 billion during the same period in 2025. Follow-on registered offerings also grew, with 557 transactions raising more than $111 billion, compared with 505 offerings that raised nearly $84 billion a year earlier. The SEC noted that the data, which are available through its public statistics and visualization tools, reflect continued strength in capital formation and are intended to provide investors, market participants, and policymakers with greater transparency into trends across the U.S. capital markets. Read more here.

ESMA Sets New 2027 Supervisory Priority

on Digital Innovation

The European Securities and Markets Authority (ESMA) announced it will launch a new Union Strategic Supervisory Priority (USSP) to help embrace innovation while protecting investors and maintaining strong safeguards. The digital innovation USSP aims to ensure supervisors have the expertise and capacity to oversee the use of new technologies. In collaboration with National Competent Authorities, ESMA stated its initial focus will be on how supervised entities use artificial intelligence and tokenisation. The new priority will run alongside the USSP on cyber and operational resilience, which has been in place since 2025. Read more here.

FiSolve Issues Client Alert on SEC Proposed

Rescission of IA “Pay-to-Play” Rule

The SEC has proposed rescinding the Investment Adviser “Pay-to-Play” Rule (Rule 206(4)-5)—a significant development for investment advisers that currently maintain political contribution preclearance, monitoring, and recordkeeping procedures. If adopted, the proposal would eliminate the rule’s two-year compensation prohibition and related requirements, potentially giving advisers greater flexibility in designing their political contribution controls. However, the proposal is not yet effective, and advisers should continue following their existing policies and procedures. FiSolve has prepared a Client Alert outlining what the SEC is proposing, what could change, and what advisers should consider doing now. Read more here.

💡FiSolve's Negotiation Tip of the Week💡

The Intersection of Law and Ethics

In negotiations, particularly within the financial services industry, it is important to recognize that legality and ethics are related but distinct concepts. A position may be fully compliant with applicable laws and regulations while still creating reputational, fiduciary, or stakeholder concerns if it falls short of broader ethical expectations. Effective negotiators therefore look beyond the question of "Can we do this?" and also consider "Should we do this?" and "How will this be perceived by clients, regulators, investors, and colleagues?" Approaching negotiations through both a legal and ethical lens can help preserve trust, strengthen long-term relationships, and avoid outcomes that may be technically permissible but inconsistent with an organization's values or duty of care. When faced with a difficult issue, focus on transparency, fairness, and the potential impact on all stakeholders, as these considerations often create sustainable value and reduce future risks that legal analysis alone may not identify. As in all negotiations, be armed with an understanding of each side’s interests, alternatives and objective criteria. Preparation is vitally important to success in negotiation.

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