New FinCEN Rule Pulls RIAs Under Bank Secrecy Act: The DI Wire reports that the U.S. Treasury Department has adopted a proposed rule that by Jan. 1, 2026, would include registered investment advisers within the scope of the Bank Secrecy Act’s anti-money laundering and “Combating the Financing of Terrorism” requirements that have long been applicable to banks, broker-dealers and mutual funds.

“ADISA certainly appreciates the goal of this rule - to ensure that bad actors are less able to access our financial system to launder money or finance terrorist activities,” said John Grady, co-chair of ADISA’s Legislative and Regulatory Committee. “We agree, however, with the criticism voiced by many that this extension of the Bank Secrecy Act to investment advisers is overbroad and not likely to achieve the desired effect. The types of accounts that this action impacts - in particular, funds with substantial limitations on shareholder liquidity - should not be very attractive vehicles for organizations seeking to finance illegal activities. In many cases, moreover, these vehicles already have meaningful AML/CFT programs in place that apply to potential and existing investors.” 

Commissioner Pans SEC Pay-to-Play Order: InvestmentNews reports that one of the Securities and Exchange Commission’s commissioners is speaking out against its recent decision to penalize an investment advisory firm for violating a “pay-to-play” rule against campaign contributions.

DOL Fiduciary Rule Battle Likely to Continue: ThinkAdvisor reports that the two federal district court decisions in Texas to stay the Department of Labor’s fiduciary rule and its exemptions are just the first step in a litigation process that is going to be playing out for months and/or years.

Venture Fund Dollar Threshold Increased by SEC: TechCrunch Venture reports that the SEC has updated the dollar threshold for a vehicle to be considered a “qualifying venture fund” to $12 million, up from $10 million, helping smaller venture capital funds.

NASAA Offers Investment Advisor Advice: NASAA is offering investment advisors advice for meeting their responsibilities regarding disclosure of outside business interests, documenting suitability, and exam deficiencies.

SEC Retreats From Mutual Fund Swing Pricing Mandate: ThinkAdvisor reports that the SEC has retreated from a plan that would have forced many mutual funds to impose so-called swing pricing during periods of high redemptions, making it costlier for investors to cash out when markets are roiled.

Dealers Push Back on FINRA 1-Minute Trade Rule: The Bond Buyer reports that securities dealers are challenging regulatory efforts led by the Municipal Securities Rulemaking Board and Financial Industry Regulatory Authority to implement a one-minute trade reporting standard.

POLICY AND LEGISLATION

Will Higher Harris Taxes Pass?: Financial Advisor looks at whether Democratic presidential nominee Kamala Harris’ support for the tax increases put forth in Biden’s most recent budget proposal in March will pass into law if she is elected, after failing in Congress twice before.

Social Security 3-Year Clawback Limit Proposed: ThinkAdvisor reports that bipartisan House legislation was introduced last week to prevent the Social Security Administration from reducing monthly payments from beneficiaries who received overpayments more than three years prior.

Congress Urged to Finalize SECURE 2.0 Technical Corrections: 401(k) Specialist Magazine reports that a group of eight retirement planning industry organizations are urging Congress to finalize and pass technical corrections that would expand provisions in SECURE 2.0 legislation.