The Financial Industry Regulatory Authority (“FINRA”) and the U.S. Department of the Treasury (“Treasury”) (as part of a public-private partnership) have recently issued guidance regarding the use of AI by the financial services industry. This alert summarizes certain AI-related updates from the 2026 FINRA Annual Regulatory Oversight Report (the “Report”), and the Treasury partnership’s recently published AI Lexicon and Financial Services AI Risk Management Framework.

FINRA

FINRA’s 2026 Report contains a new section specifically devoted to generative AI (“GenAI”). The Report clarifies that “FINRA’s rules… and the securities laws more generally, continue to apply when firms use GenAI…
Continue Reading AI in the Crosshairs: New Guidance From FINRA and Treasury