Financial Industry Regulatory Authority Says Thematic Advisor Exams to Continue: Financial Advisor Magazine reports that FINRA says it is pushing on with new “thematic exams” that helped the self-regulatory organization take enforcement actions against broker-dealers that use off-channel communications such as WhatsApp.

U.S. Department of Labor Issues Updated Cybersecurity Guidance: PLANADVISER reports that last week the DOL issued updated cybersecurity guidance for Employee Retirement Income Security Act of 1974 (ERISA)-covered employee retirement benefit plans and health and welfare plans.

The U.S. Securities and Exchange Commission Settles Charges Against Nine RIAs for Marketing Rule Violations: The DI Wire reports that the SEC settled charges against nine registered investment advisers for violating the Marketing Rule by disseminating advertisements that included untrue or unsubstantiated statements of material fact or testimonials, endorsements, or third-party ratings that lacked required disclosures.

New SEC Accounting Standards Approved: Reuters reports that the SEC voted 3-2 along party lines to approve new accounting standards, part of an effort to address concerns about the prevalence of poor quality audits.

Firms Fined By SEC for Whistleblower Violations: The Wall Street Journal reports that the SEC fined seven public companies—in industries ranging from healthcare to software—more than $3 million combined, alleging their employment, separation and other agreements contain confidentiality clauses that violated SEC whistleblower-protection rules.

SEC Chair Issues Another “AI Washing” Warning: InvestmentNews reports that SEC Chair Gary Gensler gave a warning last week to investment advisors and broker-dealers about “AI washing,” the latest sign that the regulator may be cracking down on that area.

North American Securities Administrators Association Issues Annual Report on State-Registered Adviser Industry: Financial Regulation News reports that the NASAA issued its annual report on the state-registered investment adviser industry 

Better Crisis Communications Needed, Gensler Says: Pensions & Investments reports that investors benefit from timely and accurate disclosures, and large institutions should be prepared to make such disclosures in the event of a major change or crisis, SEC Chair Gary Gensler says. 

Federal Appeals Court Rules for SEC in Proxy Adviser Ruling: Reuters reports that a split federal appeals court on Tuesday ruled in favor of the SEC, finding it was within its rights to rescind parts of Trump-era regulations on proxy advisers.

DST Fundraising Ticks Up Over the Summer: The DI Wire reports that as of Aug. 31, 2024, the year-to-date equity raise for Delaware statutory trust offerings was just less than $3.5 billion, inclusive of the approximately $493.1 million raised throughout the month, according to Mountain Dell Consulting.

POLICY AND LEGISLATION

Former President Trump Details His Economic Policy Agenda: The Hill reports that Former President Trump last week outlined his economic agenda, calling for extended tax cuts and lowering the corporate tax, deregulation, tariffs, a complete federal audit, and vowing to undo numerous Biden administration moves.

Tax Bill Stalemate Likely to Continue: Congressional Quarterly reports that the impasse over the $79 billion family and business tax break legislation in the United States Senate is likely to last at least until the elections and could complicate any efforts to renew other tax incentives due to expire at the end of this year through a traditional tax “extenders” package.

House GOP Targets Proxy Advisory Firms Over Environmental, Social & Governance: Pensions & Investments reports that House Republicans on Sept. 10 warned of what they said is an outsized influence from proxy advisory firms on the institutional investors they work with, specifically when it comes to ESG-related proposals.