Displaying items by tag: regulation

A coalition of top financial planning organizations is urging the Department of Labor to finalize its proposed Retirement Security Rule, which would require financial professionals to act in clients' best interests when giving retirement advice. 

In a joint letter to Labor Secretary Lori Chavez-DeRemer, leaders from the CFP Board, FPA, NAPFA, and XY Planning Network argued that the rule fills critical regulatory gaps left by standards like the SEC’s Reg BI. The letter cited research showing that 92% of Americans expect fiduciary advice, even though current laws don’t always guarantee it—especially for one-time retirement guidance. 

The organizations pushed back on claims that fiduciary rules restrict access to advice, pointing to firms like XYPN that serve younger, mass-affluent clients without asset minimums. The coalition also praised the rule’s efforts to modernize outdated protections, especially regarding insurance products that currently fall outside federal fiduciary oversight. 

Finsum: Financial advisors should watch these updates because they will affect their practice management. 

President Biden signed the $1.9 trillion American Relief Act of 2025, ensuring government operations through March 14 but excluding life and annuity provisions.

 The legislation may push financial services advocates to focus on standalone bills, like Secure 3.0, rather than relying on broad spending packages. With the debt ceiling still in place, Congress faces another deadline this summer, creating additional opportunities for policy negotiations. 

The package reflects a shift toward separating unrelated provisions from critical bills, as seen in recent debates. These trends could reshape how financial services policies are introduced and passed moving forward.

Finsum: We’ll see a lot of potential changes that could directly or indirectly affect annuities in Trumps first 90 days, so keep your eyes peeled for regulatory changes. 

Bitcoin has had a rough stretch since Donald Trump's election victory, following a failed attempt to surpass the $100,000 mark. This four-day decline has reduced its value by roughly 8%, with Bitcoin trading at $91,615 on Tuesday morning in New York. 

Meanwhile, the broader cryptocurrency market saw a dip in its $1 trillion gain since the November 5 election. The struggle to break through the $100,000 threshold might prompt traders to lock in profits, according to crypto analyst Noelle Acheson, though she believes this setback will be short-lived.

Despite the current dip, experts like Adrian Przelozny remain optimistic about the market’s future, expecting the bullish trend to persist in 2025. Trump's recent commitment to supporting crypto regulations and building a Bitcoin reserve has further fueled optimism.

Finsum: We remain cautious regarding bitcoin in the near term because the priority of these policy changes is still up in the air. 

As investors brace for the effects of Donald Trump's second term, Scott Sperling, Co-CEO of Thomas H. Lee Partners, offers a fresh outlook on the private equity scene. Mark Rowan, CEO of Apollo Global Management, hints at pursuing strategic acquisitions to bolster the firm's growth, while maintaining a strong focus on its existing operations. 

Sperling foresees an uptick in economic expansion and reduced operational costs under the new administration, largely due to regulatory reforms. He reflects on the past few years, noting that stringent regulations have made deals like mergers and acquisitions more complex and costly.

 Sperling also highlights the recent pressure on major tech companies, as government scrutiny and antitrust actions could stifle innovation in key sectors. Nonetheless, he remains hopeful that private equity will thrive, despite the challenges posed by shifting political dynamics

Finsum: We anticipate both regulatory and policy changes to be friendlier to P/E in the new administration. 

Private equity's growing control of rental housing has sparked concern as rents continue to rise, prompting calls for scrutiny from lawmakers. Senator Elizabeth Warren, joined by three colleagues, recently questioned KKR on how its recent $2.1 billion investment in rental units across eight states will impact long-term tenants and rental rates. 

KKR asserts its investments provide high-quality housing, but critics argue these acquisitions contribute to rising costs and fewer homeownership opportunities for regular buyers.

A Harvard report shows that rents have surged far faster than household incomes, putting financial strain on tenants who are forced to limit spending on essentials. Vice President Kamala Harris and other leaders have also highlighted private equity’s role in pricing out individual buyers and impacting housing affordability. 

Finsum: This type of regulation will obviously depend on the election results but there is little doubt that the Harris administration will make large changes to housing.