The 2025 NSCP National Conference gathered compliance professionals from across the industry to discuss one persistent truth – enforcement and examinations have not gone away.
Even amidst shifting political priorities and administrative transitions, regulators remain focused on protecting investors, ensuring transparency, and holding firms accountable. While the tone of enforcement may evolve, the expectation of compliance has not.
Enforcement Slowdown ≠ Reduced Risk
Speakers at the conference highlighted a noticeable decline in the number of enforcement actions – 90 cases in the last fiscal year, representing a 28% reduction from prior periods. The slowdown, however, reflects administrative turnover more than regulatory leniency.
With investigations often taking up to two years, many current cases will see enforcement under the next administration. As one panelist noted, “Once staff knows what’s important to the administration, they’ll adjust their exam programs accordingly.”
For firms, this means the window for preparation is now – not when enforcement returns to full pace.
Regulatory Work Continues Despite Uncertainty
Even amid discussions of a potential government shutdown, the SEC continues to file cases and enforcement actions, while FINRA remains fully operational. Audits are ongoing, and the industry continues to receive Wells Notices – formal communications that precede enforcement action.
In short, the regulatory machinery may slow, but it doesn’t stop.
Spotlight: Fixed Index Annuities Under Scrutiny
The SEC’s current investigations are examining the sale and replacement of fixed index annuities — specifically whether advisors are acting in the best interest of investors and clearly communicating standards.
Recent cases, such as the Cutter matter, reveal a growing regulatory concern: that some advisors may find it more lucrative to recommend fixed annuities and later execute replacements for additional compensation.
For compliance teams, this underscores the importance of consistent documentation, transparent rationale, and process-driven oversight — particularly around rollover and replacement recommendations.
Side Conversations
Because InvestorCOM is recognized as a leading provider in the best-interest rollover and product recommendation space, many of the side conversations at the NSCP Conference naturally gravitated toward the evolving regulatory landscape — particularly the Department of Labor’s anticipated Retirement Security Rule, PTE 2020-02, and the SEC’s application of account-type recommendations.
In these discussions, several industry experts, including attorneys from prominent law firms, shared a common expectation: that the forthcoming DOL rewrite, promised for May, will likely align closely with the framework introduced under the Trump administration’s PTE 2020-02. For firms that have chosen to sidestep PTE 2020-02, this could present significant challenges. However, firms that have built their compliance programs around the existing PTE 2020-02 obligations are likely to find themselves well positioned, with minimal adjustments needed once the new rule takes shape.
Our View
The conversations at this year’s NSCP Annual Conference made one thing clear: compliance is no longer just about defence — it’s about differentiation.
Firms that treat compliance as a reactive function risk being caught off guard when the regulatory pendulum swings back. Those that approach it as a strategic capability are better equipped to adapt, document, and demonstrate their best interest processes — not just when regulators ask, but as part of their everyday client engagement.
Modern compliance isn’t a one-time effort. It’s a culture of readiness — supported by technology that automates supervision, standardizes documentation, and builds an auditable trail of evidence.
In a landscape where investigations can take years and enforcement can shift with administrations, firms that invest now in digital oversight will move faster, serve clients more transparently, and ultimately turn compliance into a source of trust and growth.