2025 investment management regulatory outlook: Preparing for significant shifts

In 2025, the approach of regulators potentially could reverse course as the Trump administration embarks on its agenda starting with the President’s naming of former commissioner Paul Atkins as his nominee to lead the Securities and Exchange Commission (SEC). In addition to changing priorities from a new chair, the pace of regulatory change affecting the investment management industry could potentially be slowed further by recent major court rulings, which limited the power of federal regulators to issue and interpret their own rules without close court review. However, the breadth of regulation affecting the industry has not abated. Regulators are moving across several issues: off-channel communications, records retention, marketing content, fiduciary standards, and emerging uses of artificial intelligence (AI). As all of this occurs, firms responding to the changes in regulation can take plenty of actions to position themselves for 2025 and beyond.

For our 2025 investment management regulatory outlook, we’ve placed regulatory initiatives on a continuum from immediate concern to regulation around the corner to areas of continued focus. In our view, there are five major regulatory themes for firms to consider:

• An unfinished agenda with policy reversals likely
• Blowback: The judicial and political brake on regulation
• Enforcement and rulemakings on the move
• Rules on the horizon and topics to watch
• Proposals that have stalled

Strategizing for success with a regulatory roadmap

As we look ahead to 2025, the investment management industry faces a complex and evolving regulatory environment. The anticipated shifts in regulatory priorities, driven by political changes and judicial rulings, underscore the need for organizations to stay vigilant and adaptable. By focusing on key areas such as fiduciary standards, cybersecurity, AI, and emerging regulations, investment managers can better prepare for the challenges and opportunities that lie ahead. Staying informed and proactive in regulatory compliance will be crucial for navigating this dynamic landscape and ensuring long-term success.

If you are interested in learning more about the investment management industry, check out our recently released 2025 investment management industry outlook here.