FiSolve‘s February 6th weekly financial and regulatory news updates:

• Federal Trade Commission Chairman Andrew N. Ferguson Issues Warning Letters to Law Firms on Anticompetitive DEI Hiring
• SEC Division of IM Director Discusses Modernizing Investment Management in the Age of Artificial Intelligence, Invites Industry Collaboration
• FINRA Fines Firm for Outside Business Activities Violations

Read the full update here.

The SEC has proposed significant amendments to the definition of a “small entity” as it applies to investment advisers under the Regulatory Flexibility Act (RFA). See SEC Press Release Here. The proposal would dramatically expand the population of advisers considered “small” for regulatory-analysis purposes by increasing the regulatory assets under management (RAUM) threshold from $25 million to $1 billion, with future automatic inflation adjustments every 10 years.

Importantly, these changes do not alter registration status, substantive compliance obligations, or examination authority, but they will materially affect how the SEC evaluates the regulatory burden of future rulemakings on advisers.

To help you make sense of what this means for you and your clients, read the full article from our friends at SEC³ here.