MFA Letter to IOSCO on the Use of Artificial Intelligence and Machine Learning by Asset Managers
October 26, 2020
On October 26, 2020, MFA submitted a letter to the International Organization of Securities Commissions on the Use of Artificial Intelligence (AI) and Machine Learning (ML) by Intermediaries and Asset Managers, explaining that specific regulation on AI/ML are not necessary. MFA emphasized that AI and ML is used as a tool to support human decision-making in the investment process, and not the investment process. As such, we explained that the existing regulatory frameworks continue to be appropriate in overseeing the use of AI and ML, and that IOSCO’s proposed regulatory measures could be overly broad for the asset management sector given the many different uses and applications of AI and ML.