The Financial Flash

3 Industry News Stories

• The SEC has proposed amendments to Form N-PORT, the reporting form used by most registered investment companies to disclose portfolio-related information. The proposal is intended to reduce reporting burdens while preserving the SEC’s ability to monitor funds and the public’s access to meaningful data. Key changes would provide funds with an additional 15 days to file monthly reports, reduce public reporting of portfolio holdings from monthly to quarterly, and streamline certain disclosure requirements. The proposal would also remove “Names Rule” reporting from Form N-PORT and add specific reporting for funds with ETF share classes. Separately, the SEC has extended compliance dates related to the Names Rule to provide additional time for consideration of these proposed revisions. Fund advisers and compliance teams should evaluate how these changes could impact reporting workflows and disclosure practices. To find out more information about these amendments, please go HERE. 

• The SEC has filed a settled action against Joel Castellanos for his role in raising more than $25 million from over 1,200 investors in connection with an alleged $196 million unregistered and fraudulent securities offering involving MJ Capital Funding, LLC and its affiliates. According to the complaint, Castellanos and a sales team of approximately 42 agents solicited investors and earned commissions despite not being registered as a broker-dealer or associated with a registered firm. The SEC charged him with violations of federal securities registration provisions. Without admitting or denying the allegations, Castellanos consented to injunctive relief, disgorgement deemed satisfied through receivership collections, and a $150,000 civil penalty. For broker-dealers and RIAs, this case reinforces the regulatory risks of unregistered solicitation activity and the importance of proper supervision and licensing. To find out more information, please see the full release HERE.
  
  
• The SEC’s Division of Enforcement has announced significant updates to its Enforcement Manual, marking the first major revision since 2017. The changes are designed to promote fairness, transparency, consistency, and efficiency in enforcement investigations. Among the key updates are revisions to the Wells process, including a general four-week timeframe for Wells submissions and meetings, and the inclusion of senior Division leadership in Wells meetings. The manual also restores the ability for the Commission to consider settlement offers and related waiver requests simultaneously, providing greater visibility into collateral consequences of enforcement actions. Additional updates clarify how cooperation is evaluated, outline internal procedures, and modernize the Division’s investigative framework. For firm owners and compliance officers, these changes offer important insight into how enforcement matters may be handled going forward. Find the full release from the SEC HERE. 

LIMRA: Double-Digit Growth Drives Individual Life Insurance New Premium to Set New Sales Record in 2025
Total new annualized premium increased 10% year over year to $17.5 billion in 2025, according to preliminary results from LIMRA’s individual life insurance sales survey. Individual life insurance new premium has set records for four of the past five years, including 2025. The number of policies sold rose 7% for the year.
In the fourth quarter of 2025, new annualized premium totaled $4.9 billion, up 6% over the prior year. Policy count rose 9% in the fourth quarter. “It was a remarkable year for individual life insurance. In addition to the favorable economic conditions, advances in technology have improved underwriting automation, digital applications, marketing and lead generation, making the buying process faster and more accessible. These improvements benefit both financial professionals and consumers, reducing friction and expanding distribution reach,” said Sean Grindall, senior vice president and chief member relations and solutions officer, LIMRA and LOMA. “LIMRA expects economic conditions to weaken in 2026, resulting in overall life insurance new annualized premium to grow between 2% and 6% in 2026. This is slightly above the historical average of 3.1% but well below the double‑digit surge of 2025.”

Slant Expands Financial Advisors’ Access to Clients’ Families
Solidifying Slant as “the relationship CRM,” it adds Client Tree to help advisors best navigate the Great Wealth Transfer

Slant, the financial advice industry’s AI-native client relationship management (CRM) platform, today announced its platform will take its data enrichment feature a step further to include information about the family members of financial advisors’ clients. As the Great Wealth Transfer of an estimated $84 trillion is beginning to happen, advisors utilizing Slant will be informed about relationships that can be critical to maintaining strong relationships, financial planning, and an advisor’s ability to grow their book of business.