SEC AI Compliance Checklist
SEC AI Compliance Checklist for Financial Advisors
The SEC expects financial advisors to meet the same fiduciary standards when using AI as they do with human advice. This checklist ensures your AI systems are compliant, documented, and ready for examination.
SEC AI Compliance Requirements
The SEC's May 2024 guidance clarifies that RIAs must document AI governance, validation, and oversight. Here's what examiners look for:
System Documentation
- AI tool inventory (internal and vendor systems)
- Model training data sources and methodology
- Validation and testing procedures
- Performance monitoring protocols
Fiduciary Oversight
- Human review requirements for AI recommendations
- Escalation procedures for AI errors
- Client disclosure protocols
- Suitability validation processes
Risk Management
- Bias testing framework
- Accuracy and reliability metrics
- Conflict of interest analysis
- Vendor due diligence (for third-party AI)
Common Compliance Gaps
Based on recent SEC exams, these are the most frequent deficiencies we see when advisors deploy AI without proper governance:
- No documented approval process for deploying new AI tools
- Undocumented model validation or testing procedures
- Missing human oversight for AI-driven recommendations
- No bias testing or fairness assessments
- Insufficient vendor due diligence for third-party AI
SEC AI Compliance Package — $3,500
A fixed-scope engagement delivering an SEC-ready compliance framework, including documentation templates, testing procedures, and training materials.
What's Included
- Complete SEC AI compliance checklist
- AI governance policy template
- Validation and testing framework
- Client disclosure templates
- Human oversight procedures
- Training materials for advisory staff
- Ongoing regulatory update alerts (6 months)
Compliance Is Not Optional
The SEC has made clear: financial advisors using AI must meet the same fiduciary standards as those relying on human judgment. Undocumented AI usage is a regulatory red flag. Prepare now, or face exam citations later.