When a new regulatory feature is introduced that exceeds the capacity of the remaining iteration, it is essential to engage stakeholders in a discussion to reprioritize the work. This aligns with agile principles, which emphasize collaboration, customer feedback, and responding to change. The project lead should facilitate a meeting with stakeholders to determine the most valuable features and adjust the scope of the final iteration accordingly. This may involve deferring less critical features to a later release or finding other ways to accommodate the new requirement within the project constraints.
References: = The PMBOK Guide supports this approach by advocating for stakeholder engagement and collaboration to manage project changes effectively. Iteration reviews are a critical time to reassess priorities and ensure that the project delivers the most value within its constraints123.

According to the PMBOK Guide, a project manager should put any new requirements in the backlog and submit a formal change request for approval, when a change in project scope is requested by a stakeholder.
This is part of the perform integrated change control process, which involves reviewing and approving all change requests that affect the project scope, schedule, cost, quality, resources, communications, risks, procurements, or stakeholder engagement. A formal change request is a document that describes the proposed change, its justification, its impact, and its alternatives. A formal change request should be submitted to the change control board (CCB), which is a group of stakeholders authorized to approve or reject changes. The CCB should evaluate the change request based on the project objectives, the project management plan, the project documents, and the stakeholder expectations. The CCB should also consider the potential benefits and drawbacks of the change, as well as its alignment with the project charter and the business case. The CCB should then communicate the decision to the project manager and the relevant stakeholders, and update the project documents and the project management plan accordingly. This process ensures a consistent and transparent approach to managing changes, and prevents scope creep or unauthorized changes that could negatively affect the project performance or quality. References: PMBOK Guide, 6th edition, pages 115-116,
121-122.

Explanation:

According to the Project Management Body of Knowledge (PMBOK) Guide, when a stakeholder requests a change, especially when the project is nearing completion, the project manager should first raise a change request to the Change Control Board (CCB). The CCB is responsible for reviewing and approving or rejecting change requests. Informing the project sponsor about the change is also important as they need to be aware of potential impacts on the project's objectives and deliverables. This process ensures that changes are managed in a controlled manner, minimizing the risk of scope creep and maintaining the integrity of the project management plan. References: Project Management Professional (PMP) Reference Materials, PMBOK Guide, Chapter 4: Integration Management.

The stakeholder engagement plan is a component of the project management plan that outlines strategies and actions to promote productive involvement of stakeholders in decision making and project execution. It is essential to update this plan with the specific communication needs of the stakeholder who cannot attend the project status meetings consistently. This ensures that the new project manager is aware of and can continue the established communication protocol with the stakeholder.
= Engaging Stakeholders for Project Success - Project Management Institute1, Stakeholder Engagement Assessment Matrix: Uses & Example [PMP-relevant]2, Stakeholder engagement plan - Lovepmp3, Manage Stakeholder Engagement | Project Management Professional (PMP)4, Plan Stakeholder Engagement | Project Management Professional (PMP)5.