Legislation that will subject non-US companies that publicly report in the U.S. to short-swing profits liability rules under Section 16 of the Exchange Act is embedded in the annual defense funding bill that has passed in the House and goes to the Senate as early as next week. The requirement would apply to companies that
Edging Closer to CSRD Clarity on Scope
On 9 December 2025, negotiators from the European Parliament (EP), the Council of the European Union (the Council) and the European Commission reached a provisional political agreement on the final text of their “Omnibus” package amending the Corporate Sustainability Reporting Directive (CSRD).
Though the final text is not yet published, the publicly-available press-releases confirm a…
FCA Consults on Client Categorisation and Conflicts of Interest Regimes
Background
On 8 December 2025, the United Kingdom’s Financial Conduct Authority (“FCA”) published a consultation paper (CP25/36) on amending its rules on client categorisation and conflicts of interest (the “Consultation Paper”).
The Consultation Paper is seeking to reset how firms distinguish between retail and professional clients, as the rules currently stem…
SEC Division of Investment Management Director Brian Daly Signals Innovation-Forward Agenda, Positioning AI at the Forefront of SEC Strategy
By Robert Sutton, Nathan Schuur & Caroline Spillane on
On December 2, 2025, Brian Daly, Director of the Securities and Exchange Commission (the “SEC”) Division of Investment Management (the “Division”), delivered remarks to the American Bar Association outlining the Division’s top priorities under his leadership: deregulation, modernization, democratization, and artificial intelligence (“AI”).
Daly noted that the Division’s agenda will largely be driven by the…
SEC Again Extends Short Sale and Securities Lending Rules’ Compliance Deadlines to 2028 While It Considers Response to Court Ruling
On December 3, 2025, the Securities and Exchange Commission (the “SEC”) issued an exemptive order to postpone the compliance deadline for Rule 13f-2 under the Securities Exchange Act of 1934 by two years. The new deadline for compliance is January 2, 2028. Rule 13f-2 was adopted in October 2023 and compliance had already been extended…
Supreme Court to Decide Whether Section 47(b) Creates a Private Right of Action Under the Investment Company Act of 1940
Overview
On December 10, 2025, the United States Supreme Court will hear arguments in FS Credit Opportunities Corp. v. Saba Capital Master Fund, Ltd. to resolve a circuit split and determine whether there is a private right of action for violations of the Investment Company Act of 1940, as amended (the “1940 Act”).
FinReg Monthly Update
Welcome to the FinReg Monthly Update, a regular bulletin highlighting the latest developments in UK, EU and U.S. financial services regulation.
Key developments in November 2025:
Asset Management / Wealth Management
17 November – Liquidity Management RTS: The European Commission has adopted Delegated Regulations containing regulatory technical standards (RTS) on liquidity management tools under the Alternative…
SFDR 2.0 Officially Launched by European Commission
On 20 November 2025, the European Commission officially launched their legislative proposal (“Proposal”) for the updates to the Sustainable Finance Disclosure Regulation (“SFDR”). In a significant departure from the current SFDR disclosure regime, the European Commission proposes a categorisation regime for funds in its place.
The timing remains uncertain but we…
Opportunity to shape the EU Taxonomy in European Commission’s Call for Evidence
On 7 November 2025, the European Commission published a call for evidence on proposals to amend the European Union’s Taxonomy legislation. In particular, the call is in relation to two delegated regulations amending the Taxonomy Climate Delegated Act ((EU) 2021/2139, the “Taxonomy Climate Delegated Act”) and the Taxonomy Environmental Delegated Act ((EU) 2023/2486…
Tougher CSRD Position Endorsed by European Parliament – What Happens Next
On 13 November 2025, the European Parliament (“Parliament”) adopted its negotiating position on the review of the Corporate Sustainability Reporting Directive (“CSRD”), as part of the European Union’s (“EU”) broader simplification agenda for companies in the so-called “Omnibus”. The Parliament’s position raises the company-size thresholds for entities in scope…