Federal securities examiners plan to step up scrutiny of financial firms’ use of artificial intelligence, as well as their defenses against AI-powered cyberattacks.
The Securities and Exchange Commission’s (SEC) Division of Examinations on Friday released its priorities for 2027.
The document will guide reviews of more than 34,000 SEC-registered firms and market entities, including investment advisers, broker-dealers, clearing agencies, and securities exchanges.
The division said it will focus on whether firms are complying with existing rules as they increasingly use AI for investment research, coding, customer and portfolio management, and compliance.
It will also monitor how the regulated market is dealing with emerging trends such as extended trading hours and tokenized securities, which are digital tokens on blockchain networks that represent ownership of real-world assets….