AI Governance & Cybersecurity Articles

Amended Regulation S-P now applies to advisers and broker-dealers of every size, and FINRA has been explicit that outsourcing does not transfer supervisory responsibility. The result is that every regulated firm is now both the assessor and the assessed — answering questionnaires it also sends. Here is what those assessments actually test, and why most firms answer the same questions from scratch every time.

If an employee asks an AI assistant to summarize a client position, that exchange is a business communication. FINRA Rule 4511 and SEC Rule 17a-4 do not exempt it. Here is why most regulated firms cannot produce an AI audit trail today, and what a defensible program looks like.

Halfway through 2026, six technology-governance gaps are the ones most likely to surface in an SEC or FINRA examination. Here is what each one is, why examiners now expect evidence, and how RIAs and broker-dealers can close them before the request letter arrives.

Law firms hold some of the most sensitive data in existence — privileged communications, work product, client files — governed by professional responsibility rules that predate digital infrastructure. AI has exposed how few firms actually govern that data. Here is what a defensible law firm data governance program requires.

Most financial firms have data. Few govern it. Data governance for regulated organizations means documented classification, retention aligned to FINRA 17a-4 and SEC Rule 17a-4, lineage that survives an examination, and access controls that prove your sensitive data posture — before a regulator asks.

Entering protected health information into an AI tool without a signed Business Associate Agreement is a direct HIPAA violation. Most consumer AI platforms do not offer BAAs, do not meet the Security Rule's technical safeguard requirements, and are not designed for healthcare use. Here is what compliant AI governance looks like.

FINRA Rule 4511 and SEC Rule 17a-4 predate AI by decades — but they apply fully to AI-generated communications and outputs today. Here is what broker-dealers and dually registered firms must understand about books and records obligations when employees use AI.

The SEC has issued examination risk alerts, enforcement actions, and guidance that make AI governance a compliance requirement for registered investment advisers. This article covers exactly what the agency expects — and what a defensible program looks like.

On May 5, 2026, CB Financial Services filed the first-ever SEC Form 8-K triggered by shadow AI — not an external attack, not ransomware, but a single employee using an unauthorized AI tool to process non-public customer data. Here is what every regulated organization needs to understand.

The June 3, 2026 Reg S-P compliance deadline for smaller SEC-registered investment advisers has passed. Here is exactly what the rule requires, where firms are most commonly falling short, and what examiners now expect to see documented.

The SEC has brought multiple AI washing enforcement actions since 2024, with penalties ranging from $175,000 to over $1.8 million. Here is a complete breakdown of every action, the specific violations cited, and what registered firms must do to avoid the same exposure.

FINRA's 2026 Annual Regulatory Oversight Report outlines specific cybersecurity governance expectations for member firms. Here is a practitioner breakdown of what examiners look for and where most broker-dealers fall short.

The SEC's 2023 cybersecurity rules for public companies and the Division of Examinations' ongoing focus on registered advisers and broker-dealers mean cybersecurity governance is no longer optional for SEC-regulated organizations. Here is what the rules actually require.

HIPAA's Security Rule requires more than annual risk assessments and a policies binder. Here is what a technically enforced cybersecurity governance program looks like for covered entities and business associates.

FINRA's 2026 Annual Regulatory Oversight Report added a dedicated Generative AI section for the first time. Here is what broker-dealers need to build into their governance programs in response.

The SEC's Division of Examinations has made AI governance a priority examination area. Here is a practitioner-level breakdown of what examiners look for and how registered investment advisers should structure their governance programs.

HIPAA's Privacy and Security Rules apply to AI tools handling protected health information. Here is what a defensible AI governance framework looks like for healthcare organizations operating under federal oversight.