SEC charges two investment firms for alleged AI misrepresentation, fines them $225k and $175k.
The U.S. Securities and Exchange Commission (SEC) has charged two investment advisory firms for allegedly misrepresenting their use of AI in their investment processes. The SEC found the firms in violation of the Advisers Act and fined them $225,000 and $175,000, respectively, for settling the charges. The SEC emphasized its commitment to protecting investors from entities engaging in AI washing, urging financial intermediaries and public companies to uphold honesty and integrity in their communications with investors regarding AI use.
April 29, 2024
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