GRC Report Staff

Federal Reserve Governor Christopher Waller indicated he would support holding the federal funds rate steady at the September 15-16 FOMC meeting if incoming August inflation data confirms continued disinflation, but would consider a rate hike if inflation reaccelerates. For compliance and risk teams, this data-dependent signal underscores near-term uncertainty in the rate environment that could affect asset-liability management, stress testing, and client communications.

A new Federal Reserve Board staff note quantifies how direct consumer goods imports vary significantly by state, with California (13.8%) and New Jersey (12.7%) showing the highest consumption exposure versus Nebraska and Missouri (2.6% each). For financial institutions, this analysis provides a data-driven framework to assess geographic concentrations of tariff-related cost-of-living and credit risk across state-level lending, deposit, and investment portfolios.

The FCA has banned and fined financial adviser Daniel Thomas £742,700 for recklessly giving defined benefit pension transfer advice without the required qualifications or permissions, misleading clients, his principal firm, and the regulator, and destroying client records. The case, which Mr. Thomas has referred to the Upper Tribunal, underscores the FCA's continued scrutiny of pension transfer advice and the oversight responsibilities of principal firms over appointed representatives.

The FCA has added "The FBA Investor" (@thefbainvestor), operating via stan.store, to its Warning List for providing or promoting financial services without authorization. This action reinforces the importance of due diligence on social-media-driven financial promotions and the risks UK consumers face when dealing with unauthorized entities, including loss of FSCS and Financial Ombudsman Service protections.

SEC Chairman Paul Atkins announced a proposal to fully rescind Rule 206(4)-5, the "pay-to-play" rule under the Investment Advisers Act of 1940, along with related recordkeeping requirements. Compliance teams at registered investment advisers should prepare for the potential elimination of political contribution monitoring and the two-year compensation ban, pending the formal rulemaking process and public comment period.

The FCA has added ExoticInvest Trading and Investment Firm to its Warning List for providing or promoting financial services in the UK without authorization. Consumers dealing with this firm have no access to the Financial Ombudsman Service or FSCS protection, increasing the risk of financial loss with no recourse. Compliance teams should treat this as a reminder to reinforce due diligence and third-party screening controls against unauthorized entities and clone firm scams.

The SEC's Investor Advisory Committee will hold a public meeting on September 10, 2026, to examine artificial intelligence's role in the public markets information ecosystem and to discuss Regulation National Market System (Reg NMS) rules. While this is a discussion and advisory forum rather than a rulemaking action, it signals the SEC's continued focus on AI oversight and market structure reform, both of which may foreshadow future regulatory proposals.