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FINRA seeks comments on fintech innovation in broker-dealer industry

Fintech FINRA Federal Issues SEC Securities

Fintech

On July 30, the Financial Industry Regulatory Authority (FINRA) issued a Special Notice seeking comment on how it can support fintech innovation consistent with its mission of investor protection and market integrity. According to FINRA, the comment request builds on its Innovation Outreach Initiative, which launched last year to assist FINRA in understanding fintech innovations and how those innovations affect the securities industry (previously covered by InfoBytes here). The Special Notice seeks general comments on FINRA’s rules or processes that could be “modified to better support fintech innovation without adversely affecting investor protection or market integrity,” and comments pointing to specific areas of fintech innovation that may need a greater focus by the organization. In addition to those comments, the notice also raises three specific topics for comment that have previously been flagged as potential areas of engagement through the Innovation Outreach Initiative: (i) data aggregation services; (ii) supervision as it relates to artificial intelligence; and (iii) the development of a taxonomy-based machine-readable rulebook. Comments are due by October 12.