FiSolve Weekly News Digest (July 5, 2024)

Here is what we are reading in the news this week.?

Judge Ada Brown of the United States District Court for the Northern District of Texas issued the first ruling in a number of pending challenges to the Federal Trade Commission 's rule prohibiting employers from entering into post-employment non-competition arrangements with workers (Ryan LLC v. Federal Trade Commission). The decision enjoins the rule from going into effect on September 4, 2024 but only with respect to the plaintiffs in the action.? The plaintiffs consists of one private business (Ryan, LLC), the U.S. Chamber of Commerce, the Longview, Texas Chamber of Commerce, and two trade organizations (Business Roundtable and the Texas Association of Business).? However, the decision may have broader implications with many cases pending. The opinion also signals the final rule is unlikely to pass final judicial review on the merits for a number of reasons.? Read more at https://assets.bwbx.io/documents/users/iqjWHBFdfxIU/rdJ9VqcU77pg/v0.?

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The Federal Reserve Board fined a crypto-friendly bank and its holding company $43 million for deficiencies in its monitoring of transactions in compliance with anti-money laundering laws.? The U.S. Securities and Exchange Commission also charged the holding company and its executives for related violations.? The bank had previously announced it was voluntarily winding down its operations and has now paid back all deposits to its customers.? Read more at https://www.federalreserve.gov/newsevents/pressreleases/enforcement20240701a.htm and https://www.sec.gov/newsroom/press-releases/2024-82.

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The U.S. Securities and Exchange Commission , Municipal Securities Rulemaking Board and FINRA announced a Compliance Outreach Program for municipal market professionals. The event is open to the public and will take place on Wednesday, Nov. 20, and Thursday, Nov. 21, 2024, in Denver, Colorado.? The program will provide municipal market participants an opportunity to hear from SEC, MSRB and FINRA staff on timely regulatory and compliance matters for municipal advisors and dealers.? Register at https://web.cvent.com/event/42b01ae5-40e1-454e-961b-97af5fa703d7/regProcessStep1?rt=HHbjZBDX3064kIpgFG_xOg.?

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A report from Indeed Hiring Lab shows the share of part-time job postings has climbed since 2022, while full-time postings have remained flat.? The report finds employers are showing a clear and enduring openness to offering more part-time positions. ?This may be attributed to a competitive necessity to attract workers in a still-tight market with the promise of additional flexibility, and/or out of economic necessity as the economy cools requiring fewer worker hours.? The sectors with the highest number of full-time postings include insurance, legal and accounting (73%).?? Read more at https://www.hiringlab.org/2024/06/20/part-time-opportunities/.

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The U.S. Department of the Treasury and the Internal Revenue Service today issued final regulations requiring custodial brokers to report sales and exchanges of digital assets, including cryptocurrency.? The measures are intended to deter tax evasion by such platforms.? The new measure includes transitional relief under certain circumstances.? Read more at https://www.irs.gov/newsroom/treasury-irs-issue-final-regulations-requiring-broker-reporting-of-sales-and-exchanges-of-digital-assets-that-are-subject-to-tax-under-current-law-additional-guidance-to-provide-penalty-relief-address.?

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In a speech delivered at the Annual US-Central and Eastern European Connection Weekend, U.S. Securities and Exchange Commission Commissioner Hester Peirce described the “hopeless muddle” of Environmental Social and Governance (ESG) issues.? The speech notes asset managers sometimes have hidden behind ESG’s ambiguity to justify behavior that may not align with their fiduciary duty.? Commissioner Peirce observes “absent a directive from or assent by its client to consider other factors, an asset manager should focus on financial returns. ?ESG commitments can interfere with this singular focus.”? This also may adversely impact voting and engagement decisions.? Commissioner Peirce calls on managers to explain their plan around ESG clearly and stick to it. ?Read more at https://www.sec.gov/newsroom/speeches-statements/peirce-remarks-esg-062924.? ????

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