FINANCIAL INDUSTRY AND REGULATION

Higher Interest Rates Impact Alt Exits: Wealth Management reports that 97% of wealth managers and family office professionals are adjusting their exit strategies for alt investments in private equity, venture capital, real estate, infrastructure and private debt in response to higher-for-longer interest rates, according to a new survey Ocorian conducted in October 2024.

IRS Increases Retirement Contribution Limits: Financial Advisor Magazine reports that the Internal Revenue Service has issued new rules and catch-up provisions that bring new contribution limits for 401(k) plans in 2025 to $23,500, a $500 increase over 2024.

Firm Pays SEC $5 Million for Protection Failures: The Wall Street Journal reports that the electronic trading network Liquidnet has agreed to pay a $5 million Securities and Exchange Commission regulatory fine to resolve allegations that it failed to protect confidential trading information and had faulty controls around market access.

Interval Funds Finish 4th Quarter Near $100 Billion: The DI Wire reports that interval funds had a combined aggregate net asset value of $97.5 billion as of the fourth quarter of 2024, an increase of 4.4% from the prior quarter and 32.8% year-over-year, according to Robert A. Stanger & Co., Inc.

DSTs Beat Equity Raise Prediction: Delaware statutory trust offerings just exceeded Mountain Dell Consulting’s $5.5 billion equity raise prediction for 2024, raising nearly $5.66 billion, as of Dec. 31, 2024, a 10.2% increase on the previous month’s close, The DI Wire reports.

SEC Collects $63 Million in Texting Crackdown: The DI Wire reports that the SEC announced charges against nine investment advisers and three broker-dealers for failures by the firms and their personnel to maintain and preserve electronic communications, in violation of record-keeping provisions of the federal securities laws.

Robinhood Hit With $45 Million SEC Fine: Reuters reports that online trading firm Robinhood Markets has agreed to pay $45 million to settle SEC charges over record keeping, trade reporting and other rule violations, the regulator said.

DOL Fiduciary Voluntary Correction Expanded: Pensions & Investments reports that the Department of Labor Tuesday finalized a rule to expand its Voluntary Fiduciary Correction Program, which allows Employee Retirement Income Security Act covered plan sponsors to self-correct certain errors in a timely manner while avoiding potential enforcement actions and penalties.

POLICY AND LEGISLATION

House Chair Demands Answers About New Social Security Law: ThinkAdvisor reports that House Ways and Means Committee Chairman Jason Smith (R-MO) demanded last week that the Social Security Administration deliver "clear guidance" on how it will deliver "immediate relief" now that the Social Security Fairness Act is law.

Judge Rules Using ESG Factors Violates Fiduciary Duty: Pensions & Investments reports that a federal judge in Texas ruled last week that American Airlines and its retirement plan fiduciaries violated ERISA’s guidelines by putting corporate interests ahead of participants’ interests due to using environmental, social and governance factors in their investment decision-making.

Tax Cut Lapse Could Cost $1.1 Trillion in GDP, Six Million Jobs: Fox Business reports that a National Association of Manufacturers (NAM) study shows nearly six million American jobs and $1.1 trillion in GDP are at stake if President-elect Trump's 2017 tax cuts expire.