FINRA and the SEC: AI Compliance for Broker-Dealers and Investment Advisers
· 5 min read
FINRA and the SEC have moved from observation to active expectation on AI. FINRA's 2024 AI in Financial Services report outlined specific examination focus areas. The SEC's 2024 guidance on AI use in investment advice created new conflicts of interest disclosure requirements. And FINRA Rule 3110's supervision requirement applies to AI systems used in client-facing functions as fully as it does to human representatives.
If you're a broker-dealer or investment adviser using AI agents for client communication, suitability analysis, order routing, or research, the regulatory expectations are clear and increasingly examined.