May reflects a regulatory environment increasingly focused on balancing operational efficiency, governance, and risk management.
The SEC and CFTC’s proposed rollback of significant portions of the Form PF reporting regime signals a broader reassessment of regulatory burden and practical utility, while FINRA’s new identity verification requirements for IARD access reinforce the continued emphasis on cybersecurity, access controls, and protection of sensitive data.
At the same time, innovation in artificial intelligence continues to accelerate beyond model capability alone. Advances such as lower bit quantization are making AI systems more efficient, scalable, and deployable across a broader range of environments, including regulated industries. Meanwhile, the rapid growth of prediction markets and event contracts is introducing new considerations around insider trading, MNPI controls, employee conduct, and evolving regulatory oversight.
In this month’s Salus GRC Brief, we highlight key developments, emerging risks, and practical considerations for compliance teams navigating an increasingly dynamic landscape.
SEC Proposes Major Rollback of Form PF Requirements
The SEC and CFTC have proposed sweeping amendments that would significantly reduce Form PF reporting obligations, including raising filing thresholds and scaling back reporting complexity for many private fund advisers.
Action Required: FINRA Implementing Identity Verification for IARD Accounts With SSN Access
FINRA is rolling out new ID.me identity verification requirements for IARD users with access to Social Security numbers, reinforcing heightened expectations around access controls and protection of sensitive data.
Beyond the Model: How Lower Bit Quantization Is Quietly Accelerating AI Adoption
Lower bit quantization is reducing AI infrastructure requirements and accelerating enterprise adoption by improving efficiency, scalability, and deployment flexibility across regulated environments.
Prediction Markets, Event Contracts, and Emerging Insider Trading Risks
The rapid growth of prediction markets is creating new compliance and regulatory challenges related to insider trading, MNPI controls, employee conduct, and evolving federal and state oversight.
Regulatory Deadlines
- Form PF (Quarterly Filers) – May 29, 2026
- NFA Annual Questionnaire Filing – May 31, 2026
- CPO-PQR Quarterly Filing (Large CPOs) – May 31, 2026
- Review FINRA Entitlement Certifications – Ongoing Beginning May 11, 2026
- Monitor FINRA ID.me Verification Rollout Notices – Ongoing
A Note from Bill Mulligan, CEO
As we move further into the second quarter, we continue to see regulators recalibrating their approach across multiple areas of the financial services landscape. The SEC and CFTC’s proposed rollback of significant portions of the Form PF reporting regime reflects a broader recognition that compliance obligations must remain aligned with practical utility and operational burden.
At the same time, FINRA’s rollout of enhanced identity verification requirements for IARD access underscores that cybersecurity, access controls, and protection of sensitive data remain central priorities for regulators. These developments reinforce an important reality for firms today: regulatory change is not occurring in isolation. Rather, firms are being asked to balance operational efficiency, transparency, and risk management simultaneously while navigating increasingly complex technology environments.
Alongside these regulatory developments, innovation in artificial intelligence continues to accelerate in meaningful ways. While much of the market attention remains focused on model capabilities, important advances are occurring behind the scenes in how AI systems are optimized and deployed. Technologies such as lower bit quantization are making AI more efficient, scalable, and accessible across a broader range of operational environments, including on-premise and edge deployments particularly relevant for regulated industries.
As adoption expands, however, so too does the governance challenge. We continue to believe that firms integrating governance, oversight, and operational controls into AI adoption strategies from the outset will be better positioned than those treating governance as a secondary consideration after deployment.
At the same time, emerging markets and technologies continue to create new areas of regulatory and compliance risk. The rapid growth of prediction markets and event contracts has introduced important questions surrounding insider trading, MNPI controls, employee conduct, and the intersection of federal derivatives regulation and state gaming laws. Recent enforcement actions and public statements from regulators make clear that these markets are attracting increasing scrutiny.
As firms evaluate participation in these evolving areas, whether directly or through employee activity, the importance of proactive compliance frameworks, surveillance, and thoughtful policy development cannot be overstated.
Our focus remains on helping clients navigate these developments with practical, risk-based guidance that aligns regulatory expectations with operational realities. As always, we appreciate the trust our clients place in us and look forward to continuing to support you in the months ahead.
Warm regards,
Bill Mulligan, CEO