In Regulatory Wrap for the week to November 29, Rob Mason recounts attention-grabbing figures highlighted in recent regulatory releases from the SEC and FCA.
In this week’s Regulatory Wrap, we dissect insightful regulatory and compliance updates, including numbers from the Securities and Exchange Commission’s (SEC) 2024 Enforcement Results and statistics gathered by the Financial Conduct Authority (FCA) in its Artificial Intelligence (AI) and Machine Learning survey.
1. This year marks a record for SEC enforcements, with the regulator imposing $8.2 billion in financial penalties, $600 million of which were levied against more than 70 firms for recordkeeping and off-channel comms failures
2. Despite fines being up this year, total enforcement actions decreased by 26% compared to 2023
3. In the UK, results from the FCA’s recent AI survey found that while 75% of firms are using AI tools, only 35% completely understand how those tools work
4. These AI survey results raise the question of accuracy vs. explainability, and which idea is more important for firms in adopting new technologies
5. In our recent 2024 Data Insights report, we found that 400% more firms are capturing generative AI data compared to 2023, demonstrating that firms are moving towards compliant AI adoption
This week’s Regulatory Wrap is brought to you by our Director of Regulatory Intelligence, Rob Mason.
The financial landscape continues to evolve as 2025 approaches, and to remain adaptable when considering new technologies like AI and modernizing regulatory focuses, firms must reassess and adapt their compliance frameworks.
