Finra asking firms for comments on fintech innovation

Finra asking firms for comments on fintech innovation
Regulator wants to know what it can do to provide support.
JUL 30, 2018

The Financial Industry Regulatory Authority Inc. has sent a special notice to member firms asking for comments on how it can support financial technology innovation. In addition to its general request, Finra is asking for comments in specific areas, including the provision of data aggregation services, supervisory processes concerning the use of artificial intelligence and the development of a taxonomy-based machine-readable rulebook. The notice requests comment by Oct. 12, and Finra stressed that while it wants to support fintech innovation, it wishes to do so "without adversely affecting investor protection or market integrity." (More: Finra: Firms begin to heed cybersecurity, but have much to do)​ Last year, the regulator launched an innovation outreach initiative to "foster an ongoing dialogue with the securities industry and to better understand fintech innovations and their impact on the industry," it said in a release. In response, several market participants expressed a desire for Finra to solicit broader feedback regarding the effects of any rules or administrative programs on fintech innovation. The current special notice is intended to provide an opportunity for such feedback, Finra said. (More: Finra consolidates enforcement program in hopes of delivering consistency, transparency)

Latest News

LPL building out alts, banking services to chase wirehouse advisors, new CEO says
LPL building out alts, banking services to chase wirehouse advisors, new CEO says

New chief executive Rich Steinmeier replaced Dan Arnold on October 1.

Franklin Templeton CEO vows to "do what's right" amid record outflows
Franklin Templeton CEO vows to "do what's right" amid record outflows

The global firm is navigating a crisis of confidence as an SEC and DOJ probe into its Western Asset Management business sparked a historic $37B exodus.

For asset managers, easy experience is key to winning advisors' businesses
For asset managers, easy experience is key to winning advisors' businesses

Beyond returns, asset managers have to elevate their relationship with digital applications and a multichannel strategy, says JD Power.

Why retaining HNW clients ultimately comes down to one basic thing
Why retaining HNW clients ultimately comes down to one basic thing

New survey finds varied levels of loyalty to advisors by generation.

Stocks drop as investors digest Microsoft, Meta earnings
Stocks drop as investors digest Microsoft, Meta earnings

Busy day for results, key data give markets concerns.

SPONSORED Out with the old and in with the new: a 50% private markets portfolio

A great man died recently, but this did not make headlines. In fact, it barely even made the news. Maybe it’s because many have already mourned the departure of his greatest legacy: the 60/40 portfolio.

SPONSORED Destiny Wealth Partners: RIA Team of the Year shares keys to success

Discover the award-winning strategies behind Destiny Wealth Partners' client-centric approach.