FINRA issued its annual Regulatory Oversight Report on January 9, 2024. FINRA’s regulatory priorities for the year are set to include cryptocurrency regulations as well as cybersecurity standards for member firms. Of particular note is FINRA’s cautious view of the emergent use of Artificial Intelligence to improve processes and develop market models (among other tasks) in the financial industry. FINRA urged member firms to exercise caution when implementing AI technology, noting that “the use of AI tools could implicate virtually every aspect of a member firm’s regulatory obligations.” The report foreshadows further regulatory development regarding AI as FINRA members continue to implement it and discover the risks and benefits of this budding family of technologies.
A copy of the report may be found here.
Winget, Spadafora & Schwartzberg, LLP and its Securities Litigation and Arbitration practice group will be monitoring these priorities and developments closely. Should you have any questions regarding these issues, please contact a member of our firm’s Securities Litigation and Arbitration practice group.
