A new update published by Perkins Coie’s Investment Management practice, reviews a summary report, issued on June 10, 2020, by the Financial Industry Regulatory Authority (FINRA), regarding the existing and emerging uses of artificial intelligence by securities industry market participants. The report, Artificial Intelligence (AI) in the Securities Industry, reflects nearly two years’ worth of dialogue between FINRA’s Office of Financial Innovation and over two dozen market participants, including broker-dealers, academics, technology vendors, and service providers. FINRA requested input from the securities industry regarding potential challenges associated with broker-dealers using and supervising AI applications.
FINRA is currently requesting comments, due August 31, 2020, from market participants regarding all areas identified in the report and outlined in this update. A specific request was made for comments about how FINRA can develop rules that support the adoption of AI applications in the securities industry in a manner that does not compromise investor protection and market integrity.
Click here to read the update.