Cook on GenAI

Features

• Cook on GenAI 
  In a new blog, FINRA President and CEO Robert Cook discusses how FINRA is leveraging GenAI to strengthen our regulatory programs while maintaining strong governance and controls. “FINRA approaches new AI-enabled tools carefully, to allow time for piloting and refining the technology to help ensure that the tool meets its intended purpose and that potential risks are identified and addressed,” he writes. 
  
  Cook also details how FINRA is engaging with member firms regarding their use of GenAI through regular risk monitoring outreach, industry roundtables, and discussions with our advisory committees. To help member firms navigate this innovative technology, we recently published the most common GenAI use cases by member firms. “FINRA will continue to reinforce this constructive feedback loop by learning from our member firms about their experiences with GenAI and in turn sharing with them what we have learned through our own experiences and our oversight activities,” he notes. 
   
• Avoiding Mail Check Fraud and Investing in Emerging and Frontier Markets 
  A recent Investor Insights offers tips on avoiding mail theft-related check fraud, which is on the rise in the U.S. Another article delves into the opportunities and risks of investing in emerging and frontier markets. The articles are available here and here. Firms are welcome to share them and other FINRA Investor Insights with customers. 
   
• ICYMI: SFAC and Regional Committee Elections Begin 
  The elections to fill one open seat on the Small Firm Advisory Committee (SFAC) and several vacancies on the Regional Committees have begun. There has been significant interest in joining these committees this year. For the first time since Regional Committee elections began in 2018, individuals self-nominated for all vacancies. Please see the SFAC Election Notice and Regional Committee Election Notice for information on voter eligibility and links to profiles of the candidates. Member firms eligible to vote in the elections should have received voting instructions and ballots from FINRA’s election agent ([email protected]) and will have until Nov. 19 to cast their votes. 
   
• ICYMI: Treasury Clarifies Suspicious Activity Reports Requirements 
  Treasury’s Financial Crimes Enforcement Network (FinCEN) recently issued frequently asked questions about filing requirements for suspicious activity reports (SARs), including whether SARs are required for transactions at or near currency reporting thresholds. They also cover customer or account review requirements following the filing of a SAR, as well as documentation requirements for decisions not to file a SAR. Per FinCEN, the FAQs—available here—do not alter legal or regulatory requirements nor create new supervisory expectations. Please see our Oct. 17 advisory for more information. 
   
• ICYMI: Notice on Changes to ACATS Transfer Process 
  The National Securities Clearing Corporation (NSCC) administers the Automated Customer Account Transfer Service (ACATS), a system which enables firms to transfer accounts among themselves. Effective Oct. 17, the NSCC removed the settlement preparation stage from the ACATS transfer process. Please see our Oct. 21 Notice for more details.