Halting SEC Rules on Investment Algorithms and Conflicts of Interest
This bill aims to stop the Securities and Exchange Commission (SEC) from implementing a proposed rule designed to protect investors from conflicts of interest arising from the use of predictive data analytics by financial advisors. If passed, investment firms will retain greater flexibility in using advanced analytical tools, potentially fostering innovation. However, specific conflicts related to these technologies will remain unregulated by the proposed rule.
Key points
Prohibits the SEC from finalizing rules addressing conflicts of interest when broker-dealers use predictive data analytics (like AI).
Maintains the current regulatory environment, allowing investment firms greater freedom in deploying advanced analytical tools for client advice.
Expired
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