Gary Gensler is stepping up warnings to asset managers about their use of predictive data analytics and how they work with digital asset firms.
The head of the Securities and Exchange Commission said Thursday that predictive data technologies may create “inherent conflicts” of interest related to the duty that investment advisers have to their clients. Gensler said that he’d asked the agency’s staff to recommend how to address the issues.
“When an adviser 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 adviser’s own interests?” he said in remarks prepared for an SEC event.
Predictive data analytics can include a range of information drawn from consumers’ or investors’ personal information, devices, habits, and other sources. Financial services companies can use the data to recommend new products, transactions and other services to individuals.
Gensler also repeated his concerns over digital asset firms holding assets for investment firms.
Under his watch, the agency recently proposed expanding its “qualified custodian” requirements to cover all assets, including virtual currencies. If finalized, the plan could add hurdles to crypto platforms holding digital assets owned by clients of hedge funds and private equity firms.
“Based upon how crypto trading and lending platforms generally operate, investment advisers cannot rely on them today as qualified custodians,” Gensler said Thursday.
While industry statistics pointing to a succession crisis can cause alarm, advisor-owners should be free to consider a middle path between staying solo and catching the surging wave of M&A.
New joint research by T. Rowe Price, MIT, and Stanford University finds more diverse asset allocations among older participants.
With its asset pipeline bursting past $13 billion, Farther is looking to build more momentum with three new managing directors.
A Department of Labor proposal to scrap a regulatory provision under ERISA could create uncertainty for fiduciaries, the trade association argues.
"We continue to feel confident about our ability to capture 90%," LPL CEO Rich Steinmeier told analysts during the firm's 2nd quarter earnings call.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
