12.09.25

Inaccurate AI Info Will Be Advisor/Broker Exam Focus in 2026, FINRA Says

by: Tracey Longo

The Financial Industry Regulatory Authority (FINRA) has warned that the use of inaccurate AI-generated information will be a key focus of broker-dealer and advisor exams in 2026. Examiners have identified AI systems producing false client reports, misinterpreting customer profiles and generating unapproved promotional content, creating compliance risks. Firms must supervise AI outputs with the same rigor as human work, ensuring documentation, approval and explainability. Cybersecurity and vendor oversight are also priorities, with AI increasingly used in account takeovers and fraud. Other ongoing concerns include weak sales practices, Form CRS compliance, multilingual communications supervision and senior investor fraud— all requiring strengthened controls and monitoring.

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