Regulatory Alerts2024-06-27 | Regulatory Notice 24-09Added · Updated
FINRA Reminds Members of Regulatory Obligations When Using Generative Artificial Intelligence and Large Language Models
FINRA Regulatory Notice 24-09 reminds member firms that existing FINRA rules and federal securities laws apply to their use of generative AI and large language models, without creating new legal requirements. The notice specifies that firms must ensure their supervisory systems, such as those under Rule 3110, address technology governance, model risk, and data integrity when deploying these tools. It further clarifies that content standards under Rule 2210 apply to communications generated by AI just as they do to human-generated content. FINRA states it will consider issuing further guidance on specific use cases and invites member feedback on potential rule modernization.
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