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SEC RIN: 3235-AN14 Publication ID: Fall 2023 
Title: Conflicts of Interest Associated With the Use of Predictive Data Analytics by Broker-Dealers and Investment Advisers 
Abstract:

The Division of Trading and Markets and the Division of Investment Management are considering recommending that the Commission adopt rules related to broker-dealer and investment adviser conflicts in the use of predictive data analytics, artificial intelligence, machine learning, and similar technologies in connection with certain investor interactions.  The Commission proposed new rules under the Securities Exchange Act of 1934 and the Investment Advisers Act of 1940 to eliminate, or neutralize the effect of, certain conflicts of interest associated with broker-dealers’ or investment advisers’ interactions with investors through these firms’ use of technologies that optimize for, predict, guide, forecast, or direct investment-related behaviors or outcomes. The Commission also proposed amendments to rules under the Exchange Act and Advisers Act that would require firms to make and maintain certain records in accordance with the proposed conflicts rules.  This RIN has been merged with 3235-AN00.  

 
Agency: Securities and Exchange Commission(SEC)  Priority: Substantive, Nonsignificant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: Undetermined  Unfunded Mandates: No 
CFR Citation: 17 CFR 240.15l-2    17 CFR 240.17a-3    17 CFR 240.17a-4    17 CFR 275.211(h)(2)-4    17 CFR 275.204-2   
Legal Authority: 15 U.S.C. 78j    15 U.S.C. 78q    15 U.S.C. 80b-4    15 U.S.C. 80b-11    15 U.S.C. 80b-11(a)    15 U.S.C. 80b-11(h)   
Legal Deadline:  None
Timetable:
Action Date FR Cite
NPRM  08/09/2023  88 FR 53960   
NPRM Comment Period End  10/10/2023 
Final Action  04/00/2024 
Regulatory Flexibility Analysis Required: Undetermined  Government Levels Affected: Undetermined 
Federalism: Undetermined 
Included in the Regulatory Plan: No 
RIN Data Printed in the FR: No 
Related RINs: Merged with 3235-AN00 
Agency Contact:
Sirimal Mukerjee
Senior Special Counsel, Division of Investment Management
Securities and Exchange Commission
100 F Street NE,
Washington, DC 20549
Phone:202 551-3340
Email: mukerjees@sec.gov