Hook: The Compliance Tide is Rising
The regulatory environment in 2025 is proving to be as dynamic as ever, with two major themes making waves in the compliance world: environmental concerns driving cosmetic product bans and the banking sector’s updated resolution plans. Both demand adaptability and proactive measures from organizations to stay on the right side of the law.
PFAS in Cosmetics: The State-Level Scramble
Imagine you’re a cosmetics company juggling multiple clocks ticking toward various deadlines across different states. That’s the current reality as regulations banning per- and polyfluoroalkyl substances (PFAS) in cosmetics roll out between 2025 and 2032.
- These bans typically prohibit intentionally added PFAS, but what counts as “intentionally added” varies by state.
- Reporting requirements precede bans in some places, meaning companies must be ready to track and disclose PFAS presence, even in legacy products.
- The patchwork of state laws creates a complicated maze, increasing the risk of unintentional violations.
Experts emphasize that stakeholder feedback is prompting regulators to extend deadlines, such as Minnesota’s recent move to push back its initial reporting deadline to July 1, 2026, offering some breathing room for companies preparing their compliance strategies.
State attorneys general are gearing up to enforce these bans vigorously, meaning businesses face not only regulatory fines but also potential class action lawsuits under consumer protection laws.
Banks and Their “Living Wills”: Resolution Plans in Spotlight
Turning to banking, the Federal Reserve Board and FDIC recently released public sections of resolution plans — or “living wills” — for the largest and most complex banks. Why does this matter?
- These plans outline how banks could be wound down orderly in a crisis without sparking financial chaos.
- The updates reflect intensified scrutiny post-2008 financial crisis and ongoing efforts to prevent systemic risks.
- Banks and their regulators are in a constant race to stay ahead of unknown future crises.
Financial compliance officers are advised to keep a close eye on these plans as they inform how institutions manage risk and regulatory expectations.
Practical Takeaways for Businesses
- Stay alert to shifting rules and deadlines, especially when operating in multiple states or sectors.
- Build dynamic compliance systems capable of evolving with emerging regulations.
- Engage early with regulators and industry groups to influence and prepare for new rules.
Compliance in 2025 is less about reacting and more about anticipating — it’s the difference between riding the wave and getting swamped by it.
References:
- https://compliancealliance.com/news-events/news/
- https://www.jdsupra.com/legalnews/daily-compliance-news-august-12-2025-83404/
- https://www.regulationtomorrow.com
- https://www.youtube.com/watch?v=RA1xVT-a068
- https://www.hklaw.com/en/insights/publications/2025/08/pfas-in-cosmetics-state-led-regulatory-surge
