Here is what we are reading in the news this week...
SEC Charges Broker-Dealer for False and Misleading Statements Regarding Speed of Market Data; Announces $5 Million Settlement
The Securities and Exchange Commission announced settled charges against a broker-dealer for making materially false and misleading statements regarding the speed with which it displayed market data from U.S. options exchanges. The broker-dealer distributed marketing materials to its customers and potential customers stating that market data was provided to customers at speeds “in fractions of seconds.” However, the firm knew, and failed to disclose, that such data display was subject to regular delays lasting as long as several minutes during periods of high data volumes. The SEC’s order found the broker-dealer violated Section 17(a)(2) of the Securities Act. The broker-dealer consented to the issuance of a cease-and-desist order and agreed to pay a civil penalty of $5,000,000. Read more here.
FinCEN Issues Proposed Rule to Postpone Effective Date of Investment Adviser Rule
PwC’s article "What Will Be Left of Financial Services Tomorrow?" explores how financial services firms must adapt to a rapidly evolving, "multi-shock" world shaped by geopolitical tensions, technological disruption, and shifting capital flows. Drawing on a survey of 500 industry executives, PwC identifies three strategic imperatives for resilience and growth: (1) tracking and responding to the redistricting of global capital flows, (2) choosing between hyper-niche or unified business models in an increasingly convergent market, and (3) accelerating technology investments—especially in AI and automation—to eliminate manual processes and future-proof operations. The report emphasizes that firms must rethink leadership, workforce capabilities, and technology strategies to remain competitive, with agility and innovation as the cornerstones of success in tomorrow’s financial landscape. Read more here.
SEC Brings Charges in Fraudulent “Free-Riding” Scheme
The SEC charged an individual with conducting a fraudulent “free-riding” scheme in which he bought nearly $900,000 worth of securities without paying for them. The SEC's complaint alleges that over a one-month period the individual deposited checks into brokerage accounts from other accounts he knew were closed or lacked sufficient funds, and then sought to immediately trade on or withdraw funds from the brokerage accounts before the recipient broker-dealers discovered that the deposits were fraudulent. Specifically, the complaint states that he initiated nearly $3.5 million in unfunded check deposits, made securities purchases totaling nearly $900,000 using the immediate credit extended by the broker-dealers, and spent approximately $4,000 in debit card payments on a debit card received from one of the recipient broker-dealers. Each broker-dealer ultimately discovered the scheme, froze the individual’s access to the accounts, reversed the deposits, and liquidated the positions. Nevertheless, the broker-dealers suffered a total net loss of at least $5,463.26. The complaint charges the individual with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC seeks permanent injunctive relief, a conduct-based injunction, disgorgement of ill-gotten gains, prejudgment interest thereon, and a civil money penalty. Read more here.
European Supervisors Implore Financial Institutions to Stay Alert to Stability Risks
Citing “uncertain and volatile” times, the three European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) issued their Autumn 2025 Joint Committee Report on risks and vulnerabilities in the EU financial system. The Report highlights how tensions in global trade and the global security architecture have deepened geopolitical uncertainties. The authorities call for increased vigilance and urge financial entities to maintain adequate provisions in today’s tense and unpredictable environment. 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‼️
Regulatory Negotiations
When negotiating with regulators, focus on building long-term credibility over short-term wins—demonstrating proactive compliance, transparency, and a willingness to collaborate often yields more favorable outcomes than adversarial posturing. Financial Services professionals should approach these discussions not just as negotiations, but as opportunities for strategic alignment that can shape the regulatory environment to support innovation and sustainable growth.
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