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

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.