Several major law firms have expressed concern that a proposed U.S. Securities and Exchange Commission rule seeking to restrict robo advisers’ use of artificial intelligence is overbroad.

The proposed rule aims to address conflicts of interest that occur when broker-dealer and investment advisers use predictive data analytics in investor interactions. Firms have begun using technologies, such as predictive data analytics or artificial intelligence, to increase market access, efficiency and returns. The agency said the proposal is aimed at preventing retail and self-directed investment platforms from placing their own interests above investors’ interests

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]