ENTREPRENEURSHIP AND INNOVATION - Asset Managers Tech (AMT) and its subscribers are focused on innovative technologies; and, thus, we believe the recent comments of SEC Commissioner Hester M. Peirce are relevant to our trade group. For example, asset management professionals are interested in RegTech and the extent to which Artificial Intelligence may be used in complying with KYC rules or other regulations. Commissioner Peirce indicated in her remarks that, in general, regulators should allow innovation to proceed, with reasonable safeguards.
Regarding contact with investors, Commissioner Peirce asked whether there might be more experimentation in the way that funds and advisers communicate with investors. The Commissioner also asked whether investor chats and message boards might be considered for use by issuers of securities.
Further, in her 2/8/19 remarks to the University of Missouri School of Law, Commissioner Peirce said that blockchain networks run on diffuse contributions as compared to centralized entities that run networks. In this regard, a key question becomes who is steering the ship.
Commissioner Peirce's remarks (click here to access them) also went on to summarize the status of Initial Coin Offerings in light of the securities laws. Nonetheless, the Commissioner's focus on entrepreneurship and innovation seems to be in line with the interests of buy-side professionals who are currently attempting to assess the timing and scope of new technologies such as AI, Blockchain and Big Data.