Elimination of the threat of a disparate impact charge is particularly significant with respect to banks and other credit institutions use of AI. For example, a bank could be found liable if AI made a credit decision that the bank could not explain (often inherent in AI), leading to a disparate impact charge.  

The very tough challenge will be to define the conditions under which an asset born as a security matures into a commodity.  

While it is not so evident that the off-channel communications cases were based on a novel theory, FSI is quite right to criticize the fine amounts in these cases as unfair. This is because (i) the circumstances leading to the violations were the result of the introduction of novel communications technologies that leapfrogged communications retention technologies; (ii) the SEC never demonstrated any investor harm from the violations; (iii) the SEC never demonstrated that the purpose of the…

The regulators have made very clear that the use of the term "may" in a disclosure, where the firm knows that the reality is "does" or "will," is misleading and amounts to a red flag trigger for an enforcement action.