FINANCIAL INDUSTRY AND REGULATION

Two Surveys Say Alts Are Gaining Ground: InvestmentNews reports that a significant number of advisors will be stepping up allocations to alternative investments within their clients' portfolios in 2025, according to a pair of new surveys.

Qualified Opportunity Funds Top $40 Billion in 2024: The DI Wire reports that qualified opportunity funds tracked by Novogradac – a certified public accounting, valuation, and consulting organization – surpassed the $40 billion mark, reaching $40.09 billion in reported equity raised through Dec. 31, 2024, an increase of $555.6 million during the fourth quarter of 2024.

Accredited Investors Drive Alt Growth: Alternatives, reports InvestmentNews, are projected to grow by 17% annually through 2029, reaching over $3 trillion, compared with about $1.4 trillion today. Behind that are investment returns that are vaulting clients over the $1 million threshold to become accredited investors and thus eligible for a wider range of alternative products, according to a paper last week by Fuse Research Network.

SEC OKs Combined Bitcoin, Ethereum ETF: Coin Market Cap reports that the Securities and Exchange Commission last week granted approval for Bitwise’s combined Bitcoin and Ethereum exchange-traded fund on an accelerated basis.

Most Retirement Plans Have Fiduciary, Regulatory Violations: PLANADVISER reports that more than eight in 10 (84%) retirement plans have at least one likely Employee Retirement Income Security Act red flag violation that puts them at regulatory risk or indicates their failure as a fiduciary, according to Abernathy Daley 401k Consultants.

SEC May Slow Down New Investigations: Reuters reports that SEC lawyers have been told they need to seek permission from the politically appointed leadership before formally launching probes, a change that could slow down investigations.

Private Placement REITs Up 15.6% in 4th Quarter: Private placement real estate investment trusts saw their combined aggregate net asset value rise to $17.9 billion in quarter four, a 15.6% quarter-over-quarter increase, according to investment banking firm Robert A. Stanger & Co. These REITs now account for 16.1% of the $110.9 billion total aggregate NAV across publicly registered and private placement non-traded REITs, up from 14.1% of $109.9 billion in quarter three, reports The DI Wire.

CFTC Ends Regulation by Enforcement: The Wall Street Journal reports that the Commodity Futures Trading Commission is reorganizing its enforcement division in a move it said will end the practice of regulation by enforcement.

SEC Reassigns Crypto Enforcement Staff: Finance Magnates reports that the SEC is reassigning more than 50 lawyers and staff, who were solely responsible for cryptocurrency enforcement actions, to other divisions.

FINRA Cracks Down on Securities Lending Practices: The DI Wire reports that in a first-of-its-kind enforcement action, FINRA has slapped Apex Clearing Corporation with a $3.2 million fine for violating Rule 4330—the customer protection rule governing the permissible use of customers’ securities in lending programs.

POLICY AND LEGISLATION

SEC, DOL Urged to Enact Anti-ESG Measures: Pensions & Investments reports that a group of 22 Republican state financial officials are calling on the SEC and Department of Labor to issue new guidance and rules to restrict environmental, social and governance investing options for asset managers and retirement plans.

Lawmakers Target Crypto Reporting Rule: The Wall Street Journal reports that Republicans are trying to repeal a tax-compliance rule that gives the Internal Revenue Service more information about some digital asset transactions, demonstrating the cryptocurrency industry’s growing clout.

Treasury Secretary Takes Charge at CFPB: President Trump fired Consumer Financial Protection Bureau Director Rohit Chopra and replaced him with Treasury Secretary Scott Bessent, who as acting director, is ordering a freeze to work at the agency, The Wall Street Journal reported.

Trump Orders Sovereign Wealth Fund Creation: Pensions & Investments reports that President Trump Monday signed an executive order directing the Treasury and Commerce secretaries to establish a U.S. sovereign wealth fund within the next 12 months.

New HUD Secretary Confirmed: The Wall Street Journal reports that Scott Turner, an opportunity zone supporter, was confirmed on Wednesday to be the next secretary of Housing and Urban Development by a bipartisan vote of 55-44.

Senate May Break with House on Tax Cut Timing: Reuters reports that Senate Republicans Wednesday broke with their House counterparts on the timing of tax cut legislation, proposing to delay action on tax cuts until a second budget reconciliation package later this year.

UPCOMING EVENTS

2025 Spring Conference

March 31 - April 2, 2025

InterContinental Los Angeles Downtown