Regulatory, Standard of Care

SEC Proposes Expanded Performance Fee Eligibility and Accredited Investor Qualifications

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On September 30, 2026, the SEC proposed amendments to Advisers Act Rule 205-3 that would broaden when advisers may charge performance-based compensation. Separately, the SEC is weighing new ways for individuals to qualify as accredited investors. Key points:

  • One eligibility standard: The “qualified client” definition would adopt the Regulation D accredited investor standard, replacing separate net worth and AUM tests. This is a notable shift for 3(c)(1) funds and separately managed accounts.
  • Registered funds and BDCs: Could pay performance fees, subject to board approval and added disclosure.
  • New accredited investor pathways: The SEC is seeking comment on qualifying CPAs, CFAs, CFPs, and certain FINRA registrants, plus a possible FINRA-administered exam.

Until any changes take effect, current requirements still apply. In the meantime, advisers should review eligibility procedures, offering documents, and fee arrangements. Comments on the performance-compensation proposal are due December 7, 2026.

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

Compliance, Enforcement, Regulatory, Standard of Care

Updates on SEC, FINRA, CFTC and more from FiSolve

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This week’s theme? Regulators are looking at the big picture. From implied investor “groups” to AML red flags that add up, firms are expected to connect the dots before regulators do. Here are five top stories to know, with more where these came from:

  • SEC warns on Section 13(d) “groups”: A Section 21(a) Report tied to the 2021 ExxonMobil proxy contest makes clear that coordinated engagement can form a group, even without a written agreement. That could put Schedule 13G eligibility at risk.
  • FINRA: patterns matter in AML: An $800,000 penalty and an independent consultant followed missed warning signs in foreign-based small-cap IPO activity.
  • SEC targets cherry-picking: A new case reinforces advisers’ duty to allocate trades fairly and document it.
  • New FINRA Rule 3290 on OBAs: Approved by the SEC on September 15, 2026, the rule replaces Rules 3270 and 3280 with a more risk-based framework.
  • CFTC moves on crypto: An Advanced Notice of Proposed Rulemaking seeks input on a national framework for retail crypto transactions and new “crypto asset markets.” Comments are due 60 days after Federal Register publication.

The bottom line: from investor coordination and AML monitoring to trade allocation, outside business activities, and crypto, regulators expect firms to spot risks early, not after the fact. And there’s more in this week’s roundup, including ESMA’s push to update MiCA, the FCA’s proposed 90-day notice for illiquid funds, new research on investor literacy, and why Zoom calls are the latest in-flight nuisance.

Read the full update from FiSolve here.

Compliance, Enforcement, International, Regulatory, Standard of Care

Updates on SEC, FCA and more from FiSolve

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Private markets and crypto took center stage this week, as regulators on both sides of the Atlantic moved to widen access while raising the bar on transparency and safeguards. Here are five highlights, and there’s plenty more in this week’s roundup:

  • SEC opens the door wider to private markets: Proposed amendments would broaden performance-fee eligibility, modernize interval funds, and permit multiple share classes for closed-end funds. The SEC is also seeking comment on expanding the accredited investor definition to include credentialed professionals.
  • A new crypto custody framework: The SEC’s proposal (Release No. IA-7023) would let advisers self-custody certain crypto assets or use qualifying state trust companies, subject to enhanced safeguards.
  • Valuation under the microscope: SEC staff warn that boilerplate won’t cut it. Private asset valuations, especially in private credit, need robust support and tailored disclosure.
  • FCA opens its crypto gateway: UK crypto firms can now apply for authorization. Applications are expected by February 28, 2027, ahead of the regime’s October 25, 2027 start date.
  • New York expands personnel file access: Starting November 8, 2026, employers must provide current and former employees with free copies of their personnel records within five business days of a written request.

That’s just a sampling. Also in this week’s roundup: an SEC case on referral conflict disclosures, the SEC’s new examination handbook, FINRA’s unified Regulatory Operations, CFTC guidance on crypto and tokenized collateral, ESMA’s 2027 priorities, and more. Read the full update from FiSolve here.

Compliance, Enforcement, International, Regulatory, Standard of Care

Updates on SEC, CFTC and more from FiSolve

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From a possible rollback of the pay-to-play rule to a $300 million lesson in due diligence, this week’s news is a reminder that regulatory relief and enforcement risk often arrive side by side. Here are five stories worth your attention, with plenty more in this week’s roundup:

  • SEC proposes scrapping the IA pay-to-play rule: Rescinding Rule 206(4)-5 would eliminate the two-year compensation ban and related requirements. Until the proposal is adopted, advisers should keep their current policies in place.
  • A $300 million due diligence lesson: The SEC found that an adviser and its CEO breached their fiduciary duties by ignoring red flags in a fund liquidation strategy that ended in steep losses after a SPAC deal.
  • Repeated exam findings lead to a Reg SCI penalty: A trading platform operator agreed to a $575,000 penalty after years of unaddressed cybersecurity and systems policy deficiencies.
  • CFTC flags “mention markets”: A staff advisory warns that event contracts tied to what people say or where they appear carry elevated manipulation risk.
  • IPOs are back: SEC data show 208 IPOs raising more than $137 billion, up from 180 IPOs raising about $27 billion in the same period of 2025.

And that’s not all. Also in this week’s roundup: a $1.2 million FINRA restitution order over UIT supervision, the SEC EXAMS director’s push for more transparent exams, ESMA’s new supervisory priority on AI and tokenisation, and fresh data on pay, flexibility, and retention in financial services. Read the full update from FiSolve here.

Compliance, Enforcement, International, Regulatory, Standard of Care

Updates on SEC, CFTC and more from FiSolve

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Innovation and accountability went hand in hand this week. Regulators made room for tokenized trading and new crypto business models while sharpening expectations for compliance programs and whistleblower incentives. Here are four highlights, with more to explore in this week’s roundup:

  • SEC grants an “innovation exemption” for tokenized stocks: A five-year conditional order lets Tokenized Securities Venues trade tokenized NMS stock using automated market makers and liquidity pools. It comes with safeguards like volume limits, equal shareholder rights, and auditable smart contracts, and the SEC is seeking public comment.
  • SEC risk alert on annual compliance reviews: Examiners found recurring issues with the timeliness of advisers’ reviews, documentation, adherence to their own policies, and follow-through on corrective actions.
  • CFTC finalizes whistleblower award presumption: Awards of $5 million or less will be presumed at 30 percent, subject to CFTC discretion. The rule is modeled on the SEC’s Rule 21F-6(c).
  • FCA maps out its crypto regime: New guidance explains which activities will need authorization, including stablecoin issuance, trading platforms, custody, and staking, ahead of the regime’s October 25, 2027 start date.

And there’s more. Also in this week’s roundup: the SEC’s proposal to rescind the IA pay-to-play rule, CISA’s case for using cyber decoys to catch attackers, and a look at how AI and skills-based hiring are reshaping HR priorities for 2027. Read the full update from FiSolve here.