U.S. Securities and Exchange Commission seal in Washington, D.C. Photo: Diego M. Radzinschi/ALM SEC Proposes Rule to Ensure Investment Firms Avoid Conflict of Interest When Using AI
The rule would "require that, regardless of the technology used, firms meet their obligations not to place their own interests ahead of investors' interests," said SEC Chair Gary Gensler.
July 26, 2023 at 06:25 PM
4 minute read
News
The U.S. Securities and Exchange Commission on Wednesday voted 3-2 to propose a rule to "neutralize" any conflicts of interest that could arise as firms use artificial intelligence to interact with investors.
If adopted, SEC Chair Gary Gensler said the rule would "help protect investors from conflicts of interest—and require that, regardless of the technology used, firms meet their obligations not to place their own interests ahead of investors' interests."
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