Reflecting the rapid evolution of artificial intelligence (AI), its use in the financial services sector and growing regulatory scrutiny, the FinTech Association of Hong Kong (FTAHK), in collaboration with LITE Lab@HKU, has responded to the International Organization Of Securities Commission’s (IOSCO) consultation report on the use of artificial intelligence and machine learning by market intermediaries and asset managers.
The response strongly agrees with IOSCO that the use of AI and ML by market intermediaries and asset management firms creates novel opportunities and risks, with an overall need to foster trust in AI and financial markets. We believe that such risks should be appropriately mitigated by proportionate regulation that continues to foster responsible innovation in a way that promotes market integrity, fairness and investor protection, financial stability, competition and innovation. It should also support financial inclusion and combat financial crime.