Brokers, hedge funds and investment advisers are pushing back hard against attempts by the main US markets regulator to manage how artificial intelligence is used to give financial advice to investors.
Rules proposed by the Securities and Exchange Commission in July would force banks and fund managers to neutralise or eliminate any conflict of interest involving almost any form of technology when they advise clients.
Comments have continued to flow in to the SEC well past the October 10 deadline, most of which have blasted the plans for their sweeping reach and what one industry group called the regulator’s “arbitrary and capricious” rulemaking style.
“I haven’t seen in a long time — or ever really — such a line of opposition,” said Jesse Forster, equity market structure specialist at research group Coalition Greenwich.
‘Enforcement 40’ for 2020
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