SEC’s Gensler Steps Up Warnings to Money Managers on Everything From AI to Crypto
U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler said at a recent meeting that predictive data technologies may create “inherent conflicts” of interest related to the duty that investment advisors have to their clients. “When an advisor provides advice, in part through the use of predictive data analytics, do those algorithms optimize for the investor’s interests and place the investor’s interests in front of the advisor’s own interests?” he said in remarks prepared for an SEC event. Gensler also repeated his concerns over digital-asset firms holding assets for investment firms.
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