SEC Sets Comment Deadline for Proposed Requirements on Use of Predictive Data Analytics

The SEC set a comment deadline of October 10, 2023 for a proposed rulemaking that would require broker-dealers and investment advisers to eliminate conflicts of interest associated with the use of predicative data analytic ("PDA") technologies. The proposal was published in the Federal Register.

As previously covered, the SEC would require broker-dealers and investment advisers, respectively, to (i) eliminate or neutralize the effect of conflicts of interest arising from the use of PDA technologies and (ii) adopt and implement written procedures to achieve compliance with the proposed conflicts of interest requirements.