Digest November 3rd

One in 10 Advisors Plan to Switch Firms in 2025

According to recent Cerulli research, about 10% of advisors intend to change firms this year—drawn by autonomy, technology, or compensation. But the downside is significant: moving advisors typically lose 11–22% of assets during transitions.
Source: InvestmentNews – “One in 10 advisors expect to switch firms in 2025: Cerulli report.”

SEC Takes Enforcement Action Over Custody and Fraud Rules

Recent SEC enforcement shows a renewed focus on compliance risks: one adviser was penalized for failing to perform surprise exams under the Custody Rule, another for misleading clients under anti‑fraud provisions. These cases reaffirm that even long‑standing oversights are subject to scrutiny.
Source: Lowenstein Client Alert – “Two Recent SEC Enforcement Actions Against Registered Investment Advisers”

FinCEN Delays IA AML Rule to 2028

FinCEN has pushed back the implementation date for the Investment Adviser AML rule from January 1, 2026, to January 1, 2028, citing a need for more industry review and tailoring. This extra time may offer breathing room for smaller or niche advisory practices.
Source: U.S. Department of Treasury – “Statement on postponement and reopening of IA AML Rule”