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)​

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