10.21.24

SEC To Increase Scrutiny of AI Tools Used by Brokers, Advisors

by: Nicola M. White

U.S. Securities and Exchange Commission (SEC) examiners will boost scrutiny of financial firms’ use of artificial intelligence (AI) in 2025, according to a newly published Division of Examinations report. Advisors, brokers and others can expect the SEC to focus on their statements about AI tools to ensure they comply with agency rules. The regulator will also look into how firms supervise the use of the technologies for tasks tied to trading, fraud prevention and anti-money-laundering policies.

Read the full article on Bloomberg