The Securities and Exchange Commission is trying to take a less is more approach.

The agency filed just 67 new actions from February through July, a 47% drop from last year and a 66% decline from 2021, according to an analysis from law firm King & Spalding. Under former chair Gary Gensler, the SEC concentrated on crypto and off-channel communications, while current chair Paul Atkins has shifted the agency’s focus to clear-cut frauds targeting retail investors, marking a sharp contrast between the Biden- and Trump-era administrations.

“Atkins seems intent to dampen the volume of enforcement cases as part of a more ‘business-friendly’ environment in keeping with the tone set by the White House,” said securities lawyer Bill Singer.

Hands Off

Atkins has emphasized that investor protection remains central to the SEC’s mission and pledged to hold accountable those who “lie, cheat and steal.” That philosophy appears to be the guiding principle behind the majority of new cases this year, King & Spalding found:

• Nearly 50% of cases involve fraudulent securities offerings.
• About 25% target advisors accused of crimes such as misappropriating client funds.
• Meanwhile, insider trading and issuer reporting cases — historically core priorities regardless of which party is in power, the report noted — are down both in number and percentage compared with 2024 and 2021.

The decline may also stem from staffing challenges. As of May, roughly 15% of the SEC’s workforce had departed after taking buyouts or early retirements, further limiting enforcement capacity. Beyond new cases, the agency has frequently sought time extensions on older ones, creating a backlog and the illusion of regulatory activity, despite being a “mere punt,” Singer told Advisor Upside.

Battle of the Chairmen. Which chairman is more effective remains open to debate. Gensler buried staff under a flood of proposals, amendments, and disputes over crypto’s status as a security, while Atkins has been slower to act on both new and old cases, Singer argued.

“In comparing Gensler and Atkins to chess grandmasters, the former had a compelling game strategy but ran out the clock while over-thinking each move, whereas the latter just re-sets the clock after spending a lot of time touching a piece but not moving it,” he said.

As Steve Buscemi’s character on “30 Rock” once said: “How do you do, fellow kids?”

With experts expecting $124 trillion to change hands over the next two decades, a top priority is connecting with younger clients. But it’s not as simple as saying, “I managed your dad’s money, let me manage yours.” Next-gen clients are looking for alternatives that are more familiar to them, including the latest AI tools, and that’s forcing advisors to adapt to new communication styles and social preferences.

“Advisors can’t just hand Gen Z and millennials a glossy brochure of sailboats and expect loyalty,” said Mark Stancato, founder of VIP Wealth Advisors, adding that younger clients often respond to short-form video, interactive tools and plain-language explanations, instead.

Where You At?

When it comes to younger investors, the proverbial “meet clients where they are” can mean engaging through digital platforms, as well as understanding their unique financial concerns. Chicago-based Keebeck Wealth Management takes the idea literally, networking at UFC fights and music festivals.

“When you speak to older people in the business, that isn’t their normal first thought,” said Lauren Lee, Keebeck’s chief of staff. Traditional methods like cold calls and referrals remain useful, she noted, but showing up where young investors already spend time can be more effective. “If we think it will be beneficial to just show face at an event, we’ll go and do that, see what type of crowd it is and what people are talking about,” she told Advisor Upside.

Having younger staff helps too, said Lee, who is 24. When headlines highlight Gen Z investing trends, younger employees can confirm whether they reflect real conversations among peers. “It helps bring us back to relevancy,” she said.

Balancing Risk and Reality. Younger investors often lean toward alternatives and complex strategies, even if that means more risk. “Saving for retirement often doesn’t resonate with young clients, no matter how driven they may be,” said Annie Garland, CFP with Wealth Clarity. “Many young clients also haven’t embraced the reality that successful investing is often quite boring.”

However, Gen Zers and millennials are also eager to expand their financial knowledge, and a little education goes a long way. Just reminding younger clients that more exciting investments might not fit into their financial plan is sometimes all it takes to cure them of “shiny object syndrome,” Garland told Advisor Upside.

Index funds were a step in the right direction.

Investors were fed up with the high fees and poor performance from stock-picking active managers. Decades of evidence is now suggesting that very few actively managed funds consistently beat the market. That means a rules-based investment proposition with low expense ratios and broad diversification offers an appealing alternative. But, even with index-fund investing comes limitations.

A rigid implementation process that prioritizes trackability over expected returns may be costing investors hundreds of millions of dollars each year — if not more. And arbitrary construction rules for security inclusion may result in notable deviations from the market. There is a better way for investors to get market returns with low cost, while not paying extra in the hidden costs of indexing.

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