The International Organization of Securities Commissions has issued a consultation on proposed guidance on the use of artificial intelligence and machine learning by market intermediaries and asset managers. The draft guidance is intended to assist IOSCO member jurisdictions to develop appropriate regulatory frameworks to mitigate the risks arising from the increased use of AI and ML by financial institutions. Comments on the draft Guidance can be submitted until October 26, 2020.
Following industry engagement, IOSCO determined that firms are encountering risks and issues related to governance and oversight; algorithm development, testing and ongoing monitoring; data quality and bias; transparency; outsourcing; and ethical concerns. IOSCO is proposing guidance that would require firms to:
View the consultation paper.
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