We the undersigned, write to comment on, and express our concerns with, the Securities and Exchange Commission’s (the “Commission”) proposed rule regarding Conflicts of Interest Associated with the Use of Predictive Data Analytics by Broker-Dealers and Investment Advisers.
This letter represents the consensus view of the undersigned, and it is not necessarily true that each of the undersigned endorses each of the positions taken in this letter.2 On behalf of our members who represent investors, market participants, and other stakeholders across the U.S. capital markets, we request the Commission withdraw the Proposal. While we support appropriate regulatory frameworks that protect investors, we find this Proposal unnecessary, inadequately reasoned, and fatally flawed. We are also concerned that the Commission lacks statutory authority to adopt these rules. This concern is especially heightened when the same authority relied upon in the Proposal is currently pending court review.