Wall Street’s Use of AI and Data Analytics Faces New SEC Rules
- Brokers, money managers would fall under proposed regulations
- Firms would have to eliminate AI-related conflicts of interest
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Wall Street’s main regulator is unveiling proposed restrictions for brokerages and money managers that use artificial intelligence to interact with clients.
The US Securities and Exchange Commission approved a plan on Wednesday to root out what Chair Gary Gensler has said are conflicts of interest that can arise when financial firms adopt the technologies. The agency also adopted final rules requiring companies to disclose serious cybersecurity incidents within four business days after they’re deemed significant.