News & Advocacy


ADISA Submits Comments to SEC Regarding Predictive Data Analytics

Filter Articles

Search by Topic

Last week, ADISA submitted comments on the SEC’s proposed rulemaking entitled “Conflicts of Interest Associated With the Use of Predictive Data Analytics by Broker-Dealers and Investment Advisors.” ADISA believes the proposed rule, as written, is both overbroad and imprecise and carries with it the likelihood of causing confusion and imposing conflicting standards on regulated firms. Secondly, ADISA believes the proposal contains virtually no data to substantiate the SEC’s claims or purported need to act. Furthermore, the proposal could potentially create a new, heightened standard not contained within Reg BI.

ADISA encourages the SEC to reexamine its proposal before moving forward. Predictive data analytics should be used appropriately to benefit investors, and focus should remain on enforcement and ensuring fairness and shrinking the wealth gap, not on broad, sweeping changes that create new legal standards, increase costs, dampen investor opportunities, and stifle innovation especially with firms who serve the smaller investors in diverse communities.

The letter, drafted by ADISA’s Legislative & Regulatory Committee Co-Chairs John Grady, ABR Dynamic Funds, and Catherine Bowman, The Bowman Law Firm, was signed by ADISA President Michael Underhill.

Read the letter in its entirety here.