Investor Protection

CFA Supports SEC Proposal to Ensure that Financial Firms Do Not Use Technology in Ways That Place Firms’ Interests Ahead of Investors Interests

In a letter to the Securities and Exchange Commissioner (SEC), CFA offered strong support for a proposal to address conflicts of interest associated with the use of predictive data analytics by broker-dealers and investment advisers. According to the letter, the proposal correctly recognizes that technology-driven conflicts of interest are too complex and evolve too quickly for the vast majority of investors to understand and protect themselves against, there is significant likelihood of widespread investor harm resulting from technology-driven conflicts of interest, and that disclosure would not effectively address these concerns.