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Covering Draft Guidance, Capital Markets, Cancer Drugs, Regulation Best Interest, Enforcement. Explore key regulatory updates on enforcement actions, AI supervisory tools in capital markets, draft guidance to reduce animal testing in cancer drug development, and compliance under Regulation Best Interest.
Regulatory news, updates, and insights for USA presented by the Carver Agents team
Welcome to Carver's USA Regulatory Updates for May 30, 2026.
The Alberta Securities Commission in Canada has issued cease-and-desist letters to promoters of the BG Wealth Sharing scam and its fraudulent platform DSJ Exchange. Investors are warned not to transfer additional funds or pay any so-called taxes to access funds. They are also advised to exit all group chats and delete related scam apps to avoid further harm.
In the United States, the Federal Reserve Board has issued consent prohibition orders against a former employee of Atlantic Union Bank and a former employee of Frost Bank. These orders bar the individuals from participating in the affairs of insured depository institutions due to fraudulent activities and embezzlement. The orders require compliance without rights to hearings or judicial review and direct communications to designated legal counsel and the Board of Governors.
The US Food and Drug Administration laboratory testing revealed that the dietary supplement Tawon Liar contains undisclosed controlled substances including tapentadol, dexamethasone, meloxicam, and ketorolac. Consumers are advised not to purchase or use Tawon Liar, and healthcare professionals and consumers should report adverse events to the FDA’s MedWatch program.
The US Department of Agriculture’s Food Safety and Inspection Service has issued a public health alert for beef kofta products produced by Olympia Food Industries and served at The Kebab Shop restaurant locations in California, Texas, and Florida due to possible contamination with Shiga toxin-producing E. coli O157:H7. The Kebab Shop ceased selling the product on May 18, 2026. Consumers should discard any leftover beef kofta and seek medical attention if symptoms develop within 10 days of exposure. FSIS advises thorough cooking of all ground beef products.
The International Organization of Securities Commissions, or IOSCO, has published an AI Supervisory Toolkit that includes guidance on governance, risk management, third-party risk, disclosure, and reporting for regulated entities in capital markets. The toolkit addresses risks associated with AI such as complexity, transparency, and cyber threats, supporting investor protection and market integrity. Supervisors are encouraged to adopt policies addressing AI risks and engage with market participants.
The US Food and Drug Administration has issued draft guidance aimed at reducing unnecessary animal testing in cancer drug development. The guidance recommends eliminating redundant tests, using a single relevant species instead of two, and replacing animal studies with evidence-based New Approach Methodologies where appropriate.
The US Securities and Exchange Commission has issued policy statements and proposed amendments to provide regulatory flexibility for public companies. Key changes include allowing companies to file one semiannual report instead of three quarterly reports, expanding shelf registration access to nearly all public companies including new and small companies, and broadening relief from certain disclosure requirements based on company size and public tenure.
The SEC has also instituted administrative and cease-and-desist proceedings against David Lerner Associates, Inc. for failing to comply with Regulation Best Interest’s Care and Compliance Obligations. The violations relate to mutual fund switch recommendations and the use of Customized Investment Plans. Broker-dealers are reminded to exercise reasonable diligence, care, and skill in understanding risks, rewards, and costs of recommendations, and to maintain written policies and procedures to ensure compliance.
Finally, the US Food and Drug Administration reiterates that domperidone is not approved for any human use in the United States. The FDA highlights serious cardiac and neuropsychiatric risks associated with its use, particularly for lactation. Domperidone may only be legally used under an investigational new drug application or expanded access program for certain gastrointestinal conditions. Healthcare professionals should be aware of these risks and regulatory restrictions.
That wraps up today's regulatory updates. Visit carveragents.ai for more information.