SEC Passes on Private Fund Adviser Rule Appeal: Mergers & Acquisitions reports that the Securities and Exchange Commission won't challenge a Fifth Circuit decision that vacated its recently passed disclosure rules for private fund advisers, taking no action as its deadline to appeal to the U.S. Supreme Court passed.

Merrill Lynch Fined $3 Million by FINRA: ThinkAdvisor reports that the Financial Industry Regulatory Authority has fined Merrill Lynch $3 million for failing to have an adequate supervisory system to detect and prevent potentially manipulative trading by the firm’s customers.

Alt Providers Team Up Aiming at $1 Trillion in Retail Assets: Financial Advisor reports alternatives providers and asset managers are forming strategic partnerships to capture potentially $1 trillion in retail assets, concludes Cerulli Associates in its latest U.S. alternative investment report.

Raymond James Hit by $1.9 Million Customer Complaint Fine: Wealth Management reports that Raymond James will pay over $1.9 million to settle FINRA allegations that it failed to properly report written customer complaints to regulators for years.

SEC to Require Advisors to Reveal Cyber Breaches: Financial Advisor reports that the SEC, along with many state regulators, have made it clear that they expect industry participants to have cybersecurity protections in place. Proposed regulations will require wealth managers to adopt policies and procedures that are “adequate” and that they must “effectively certify.”

Six Credit Rating Agencies Fined: The DI Wire reports that the SEC announced Tuesday that six nationally recognized statistical rating organizations agreed to pay a combined $49 million for failing to preserve electronic communications, the latest wave of settlements in an ongoing crackdown that has yielded billions in fines. 

In-House Malpractice Suits Dropped by the SEC: Reuters reports that the SEC last month asked for the dismissal of all active misconduct proceedings against accountants sitting before its in-house judges, which legal experts said was a fresh sign that a recent Supreme Court ruling is curtailing the agency's enforcement powers.

Court Challenge to FINRA Enforcement Dismissed: Bloomberg Law reports that a federal court on Wednesday ruled that it lacked jurisdiction over a broker’s claims that FINRA’s allegations against him in a disciplinary proceeding should be brought before an Article III court. 

POLICY AND LEGISLATION

CBO Says Social Security Funding OK Until 2034: ThinkAdvisor reports that the main trust funds used to support payments of Social Security retirement benefits are set to run dry in 2034, according to the latest annual funding report published by the Congressional Budget Office. 

Some Investment Advisors Criticized by GAO Report: Financial Advisor reports IRA rollovers recommended by fiduciaries including investment advisors are marred by conflicts of interest that often go undetected by regulators, according to a new report from the General Accounting Office. 

Harris Proposes Raising Capital Gains Tax to 28%: The Wall Street Journal reports that Vice President Kamala Harris has proposed a 28% capital gains tax rate for individuals earning at least $1 million, a lower rate than the 39.6% proposed by President Joe Biden, but an increase from the current 20% rate.