SEC, FINRA, NYDFS AI Regulations

Financial Services AI Compliance Checklist

This interactive checklist helps financial services enterprises ensure AI deployments comply with key regulatory frameworks from SEC, FINRA, and NYDFS. Assess your compliance readiness across governance, data management, transparency, and audit controls.

Regulators such as the U.S. Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA), and the New York Department of Financial Services (NYDFS) apply specific requirements to AI use in financial services. Meeting these requirements is essential to avoid penalties and operational risks.

This interactive checklist guides compliance leads and platform engineers through key controls related to governance, data integrity, explainability, bias mitigation, and audit trails for AI systems. It also indicates areas warranting further review.

Inputs

Is there a documented AI governance policy aligned with SEC and FINRA guidelines?

YesNo

Have AI models undergone formal approval including risk assessment by compliance teams?

YesNo

Are data quality and lineage controls in place according to NYDFS cybersecurity regulations?

YesNo

Do your AI solutions provide explainability features to meet SEC transparency expectations?

YesNo

Is there a process for ongoing bias detection and mitigation consistent with FINRA guidance?

YesNo

Are audit logs maintained for AI decisions to comply with NYDFS recordkeeping requirements?

YesNo

Result

Compliance readiness score

(ai-governance == 'yes' ? 15 : 0) + (model-approval == 'yes' ? 15 : 0) + (data-quality-controls == 'yes' ? 20 : 0) + (transparency-measures == 'yes' ? 20 : 0) + (bias-detection == 'yes' ? 15 : 0) + (audit-trail == 'yes' ? 15 : 0)

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Compliance assessment

Note

This checklist reflects common regulatory expectations as of mid-2024 but does not substitute formal legal advice. Consult compliance counsel to tailor requirements according to your organization’s AI use case and jurisdiction.

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