Skip to main content

SEC’s Take on Predictive Data Analytics: A Failed Prediction?

David Adams and Steve Ganis were quoted in a FinOps Report article on the SEC’s take on the use of predictive data analytics by broker-dealers when determining conflicts of interest.

David commented, “The SEC’s Regulation BI requirements for broker-dealers and its fiduciary duty requirements for investment advisers focus on the recommendation of a security or provision of investment advice. In the case of predictive data analytics, the rules would apply even if no recommendation or advice is offered.”

Steve said, “The SEC’s proposal would represent a sea change in how it protects investors when firms rely on technological advancements. What constitutes a conflict and what one must do to fix a conflict would change drastically just because of the technology used.”


FinOps Report