Welcome to our biweekly recap, where we curate the top compliance news and insights from various industry publications. We have selected the most relevant and important updates related to regulatory compliance, industry news, and critical updates.
Today’s recap focuses on FINRA’s 2024 fines, a push to rollback SEC rules, the FCA dropping a proposed plan to name firms under investigation, NASAA’s view on top threats to investors, and the new EDGAR system.
Here are our top compliance articles as of March 14, 2025:
Roll back Gensler-era rules, private funds industry urges SEC (Author – Leo Almazora, Investment News)
The Managed Funds Association (MFA) has urged the SEC to reconsider several regulations introduced under former Chair Gary Gensler, arguing that these rules impose unnecessary costs and burdens on market participants. In a letter to Acting SEC Chair Mark Uyeda, the MFA recommended policy changes, including delaying mandates for Treasury trade clearing and reducing disclosure requirements for private funds. The MFA contends that the current rules create inefficiencies without clear benefits and highlights the need for expanded access to central clearing to improve market efficiency and resiliency. Additionally, the MFA seeks changes to Form PF, which requires private funds to report events that could trigger market stress or indicate systemic risk within 72 hours. The industry group argues that these reporting requirements are overly broad and impose significant costs without providing meaningful benefits to regulators.
FINRA’s Top 5 Fine Categories: 2024 (Author – Michael S. Fischer, ThinkAdvisor)
In 2024, the Financial Industry Regulatory Authority (FINRA) increased the number of disciplinary actions and restitution payments to victims but collected less in fines overall. According to an analysis by Eversheds Sutherland LLP, the top five enforcement issues by total fines were inaccurately reporting trades, market manipulation through spoofing, errors in options trading, technological issues, and fingerprinting non-registered persons. Despite facing legal and political challenges questioning its constitutionality, FINRA’s enforcement program is expected to grow, especially with potential declines in SEC enforcement under the current political landscape
FCA drops plan to name and shame firms under investigation (Author – Sahar Nazir, Investment Week)
The Financial Conduct Authority (FCA) has decided to abandon its controversial plan to publicly “name and shame” firms under investigation. This decision comes after significant backlash from the industry and politicians, who argued that such disclosures could unfairly damage the reputations of firms that may not ultimately face regulatory action. Instead, the FCA will continue to apply its current policy of only publicizing investigations in exceptional circumstances. This move aims to balance the need for transparency with the potential harm to firms’ reputations, ensuring that consumer protection remains a priority while easing regulatory burdens on businesses. The FCA plans to implement changes that have broader support and will help protect consumers from harm.
NASAA flags crypto scams, social media schemes among top investor threats for 2025 (Author – Leo Almazora, Investment News)
The North American Securities Administrators Association (NASAA) has identified crypto scams and social media schemes as the top investor threats for 2025. According to NASAA’s annual report, fraudsters are increasingly using digital assets and social media platforms to target investors, leveraging sophisticated tactics such as AI-generated content and deepfake technology to create a sense of legitimacy. These scams often exploit emotions like fear of missing out and get-rich-quick schemes, pressuring investors to part with their money quickly. NASAA emphasizes the importance of due diligence and warns that many of these schemes are perpetrated by unregistered sellers. The report highlights the need for heightened vigilance and robust regulatory measures to protect investors from these evolving threats.
Filer Transition to New and Improved EDGAR Begins March 24 (SEC)
The SEC has announced the launch of the new and improved EDGAR system, set to begin on March 24, 2025. This upgrade, known as “EDGAR Next,” aims to enhance the security and usability of the Electronic Data Gathering, Analysis, and Retrieval system. Filers will need to enroll in EDGAR Next by submitting an amended Form ID to obtain new access credentials. The SEC has provided extensive guidance and resources, including instructional videos and webinars, to assist filers with this transition. Enrollment will remain open until December 19, 2025, but filers are encouraged to enroll by September 12, 2025, to avoid any interruptions in their filing capabilities. The new EDGAR Filer Management dashboard will also go live on the SEC’s website, offering a more streamlined and secure experience for users.
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