SEC Proposed Rule — Conflicts of Interest Associated with Use of Predictive Data Analytics
United States · SEC Release Nos. 34-97990 / IA-6353 (proposed July 26, 2023); withdrawn via Release No. 33-11377 (June 12, 2025)
This SEC proposal (July 2023) would have required broker-dealers and investment advisers to eliminate or neutralize conflicts of interest from AI/predictive-analytics technologies used in investor interactions. It DID NOT take effect: on June 12, 2025 the SEC formally withdrew it (one of 14 Biden/Gensler-era proposals withdrawn), so no rule is in force — any future rulemaking would have to start over with a new proposal.
Technical detail
Release Nos. 34-97990 / IA-6353 (17 CFR Parts 240, 275), proposed July 26, 2023: would have required BDs and IAs to identify and eliminate/neutralize conflicts of interest from predictive data analytics and similar technologies in investor interactions, with recordkeeping. Formally withdrawn by the SEC on June 12, 2025 (Notice of Withdrawal of Proposed Regulatory Actions, Release No. 33-11377).
Who is protected: Would have protected retail investors interacting with BD/IA predictive-analytics systems — but the proposal was withdrawn and never took effect
Who must comply: Would have applied to SEC-registered broker-dealers and investment advisers — not in force
Key facts
| Jurisdiction | United States |
|---|---|
| Level | Federal |
| Status | Expired |
| Protection strength | Unknown |
| Citation | SEC Release Nos. 34-97990 / IA-6353 (proposed July 26, 2023); withdrawn via Release No. 33-11377 (June 12, 2025) |
| Enforced by | Securities and Exchange Commission (no rule in force) |
| Private right of action | No — agency enforcement only |
| Penalties | None — proposal withdrawn before finalization |
| Topics | automated decision-making · consumer protection |
| Last verified | 2026-06-22 |
| Official source | SEC — Conflicts of Interest Associated with the Use of Predictive Data Analytics (File No. S7-12-23; proposal withdrawn June 12, 2025) ↗ |
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