Huge modifications to Labor employee classification guidelines “might basically alter employment practices, particularly for unbiased contractors,” Cetera continued.
Additional, the introduction of “junk payment laws might power main changes in payment buildings, and attainable modifications to SEC disclosure and pre-dispute arbitration agreements (PDAA) might profoundly influence how advisors handle consumer relationships and disputes,” Cetera stated.
Enforcement Actions Stay Regular
The variety of regulatory enforcement actions taken by the SEC and FINRA in opposition to monetary advisory companies from 2022 to 2024 up to now has remained regular based mostly on the variety of information releases issued that reference monetary advisory companies, in line with Cetera.
“SEC enforcement actions have wavered from 74 in 2022 to 66 in 2024 yr up to now. Equally, FINRA actions went from 34 in 2022 to 52 in 2023 to settle again round 34 yr up to now,” the agency stated.
“This pattern underscores the regular regulatory scrutiny on the monetary advisory business, however definitely the result of the elections will have an effect.”
Election Implications
The 2024 presidential election has created regulatory expectations.
“A Democrat administration is prone to emphasize points reminiscent of employee classification, fiduciary duties, and stricter ESG rules,” Cetera stated. “Conversely, a Republican administration may deal with lowering regulatory burdens and easing restrictions on monetary practices.”