# How does the FINRA regulate AI in banking?

Source: https://www.bankingnewsai.com/ai-regulation/finra
Last updated: Oct 5, 2026

FINRA has no AI-specific rule; it applies its existing, technology-neutral rules to artificial intelligence at broker-dealers. Regulatory Notice 24-09 (June 27, 2024) reminds members that FINRA rules and the securities laws apply to generative AI just as to any other tool, and that supervision (Rule 3110) and communications (Rule 2210) are the most direct hooks. The 2026 Annual Regulatory Oversight Report (December 9, 2025) added a new GenAI section, including AI agents, listing what firms may consider on governance, testing and monitoring. For a bank, FINRA matters through its broker-dealer subsidiaries, not at the bank itself.

## At a glance

| Field | Value |
| --- | --- |
| Full name | Financial Industry Regulatory Authority (self-regulatory organization for broker-dealers) |
| Jurisdiction | United States (all registered broker-dealer member firms; relevant to banks through bank-affiliated broker-dealers and securities subsidiaries) |
| Role | Self-regulatory organization supervising broker-dealers; technology-neutral AI guidance under existing rules |
| How binding | Supervisory guidance |
| Applies to | FINRA member firms, meaning registered broker-dealers. Banks themselves are not FINRA members, but bank holding companies commonly own broker-dealers, and those affiliates must follow FINRA rules, including when they use generative AI. Bank-level AI expectations remain with the prudential regulators. |
| Key document | Regulatory Notice 24-09, 'FINRA Reminds Members of Regulatory Obligations When Using Generative Artificial Intelligence and Large Language Models' (June 27, 2024), and the GenAI section of the 2026 FINRA Annual Regulatory Oversight Report (December 9, 2025) |
| Latest move | On July 9, 2026 FINRA published Regulatory Notice 26-14 proposing to modernize Rule 2210 (Communications with the Public), citing advances in generative AI and replacing the prescriptive principal pre-use approval of retail communications with risk-based supervision standards; comments were due September 11, 2026 |

## Overview

FINRA's AI position is 'technologically neutral'. Regulatory Notice 24-09 says it does not create new legal or regulatory requirements or new interpretations of existing requirements, but warns that AI use 'could implicate virtually every area of a member firm's regulatory obligations'. The notice ties AI to Rule 3110 (a reasonably designed supervisory system, which should address technology governance including model risk management, data privacy and integrity, and reliability and accuracy of the model) and to Rule 2210 (content standards for communications apply whether a human or a tool generated them), and it applies whether a firm builds the tool or uses a third party's, including embedded features.

The 2026 report moves from reminder to observation. It reports that, based on a FINRA survey and engagement with other regulators, firms focus on efficiency in internal processes and information retrieval, with 'Summarization and Information Extraction' the top use case, and it adds a section on AI agents: autonomy, scope and authority, auditability, data sensitivity, domain knowledge and misaligned reward functions. FINRA's July 2026 proposal to modernize Rule 2210 (Regulatory Notice 26-14, comments closed September 11, 2026) cites advances in generative AI among its reasons, so the communications rulebook is the first place AI-driven rule change is visible.

## Documents (2)

- Dec 9, 2025 — [2026 FINRA Annual Regulatory Oversight Report](https://www.bankingnewsai.com/ai-regulation/documents/finra-annual-regulatory-oversight-report-2026): 2026 FINRA Annual Regulatory Oversight Report: GenAI: Continuing and Emerging Trends (In force)
- Jun 27, 2024 — [FINRA Regulatory Notice 24-09](https://www.bankingnewsai.com/ai-regulation/documents/finra-regulatory-notice-24-09): FINRA Reminds Members of Regulatory Obligations When Using Generative Artificial Intelligence and Large Language Models (In force)

## Timeline

- Jul 9, 2026 — [FINRA proposes to modernize Rule 2210, citing generative AI (Regulatory Notice 26-14)](https://www.finra.org/rules-guidance/notices/26-14) — The notice requests comment on replacing the prescriptive principal pre-use approval requirement for retail communications with risk-based supervision standards, reflecting changes in social media use and advances in generative AI. Comments were due September 11, 2026.
- Jan 27, 2026 — [FINRA blog publishes observations on AI agents](https://www.finra.org/media-center/blog/observations-on-ai-agents) — A FINRA blog post, 'Emerging Trend in GenAI: Observations on AI Agents', restates the agent risks and supervisory considerations from the 2026 Annual Regulatory Oversight Report, including human-in-the-loop oversight, tracking agent actions and decisions, and guardrails limiting agent behavior.
- Dec 9, 2025 — [2026 FINRA Annual Regulatory Oversight Report](https://www.bankingnewsai.com/ai-regulation/documents/finra-annual-regulatory-oversight-report-2026): 2026 FINRA Annual Regulatory Oversight Report — 2026 FINRA Annual Regulatory Oversight Report: GenAI: Continuing and Emerging Trends — FINRA's 2026 Annual Regulatory Oversight Report, published December 9, 2025, adds a section 'GenAI: Continuing and Emerging Trends', marked 'NEW FOR 2026'.
- Jun 27, 2024 — [FINRA Regulatory Notice 24-09](https://www.bankingnewsai.com/ai-regulation/documents/finra-regulatory-notice-24-09): FINRA Regulatory Notice 24-09 — FINRA Reminds Members of Regulatory Obligations When Using Generative Artificial Intelligence and Large Language Models — FINRA Regulatory Notice 24-09, published June 27, 2024, reminds member firms that FINRA's technology-neutral rules and the securities laws apply when they use generative AI or large language models, 'just as they apply when member firms use any other technology or tool'.

## What to watch next

- Whether FINRA files a rule proposal with the SEC to amend Rule 2210 after the September 11, 2026 comment close on Regulatory Notice 26-14
- Any further FINRA guidance on specific GenAI use cases; Regulatory Notice 24-09 says FINRA 'will consider issuing further guidance on how particular rules may apply with respect to specific use cases'
- Examination findings on AI agents, supervision and recordkeeping in the next Annual Regulatory Oversight Report

## FAQ

### Does FINRA regulate AI at banks?

Not banks directly. FINRA's members are broker-dealers, so its AI guidance applies to a bank's registered broker-dealer affiliates. The bank itself is supervised by the Federal Reserve, OCC or FDIC, whose model-risk and third-party expectations apply.

### Is there a FINRA rule specifically on AI?

No. Regulatory Notice 24-09 says it creates no new requirements; FINRA applies existing rules such as Rule 3110 on supervision and Rule 2210 on communications to generative AI and says its rules are technology neutral.

### Does FINRA say anything about AI agents?

Yes. The 2026 Annual Regulatory Oversight Report added a section on AI agents, listing risks (autonomy, scope and authority, auditability, data sensitivity, domain knowledge, and misaligned reward functions) and suggesting firms consider monitoring agent access and data handling, human-in-the-loop oversight, tracking agent actions, and guardrails.

Related authorities: [SEC](https://www.bankingnewsai.com/ai-regulation/sec), [IOSCO](https://www.bankingnewsai.com/ai-regulation/iosco), [U.S. Treasury](https://www.bankingnewsai.com/ai-regulation/treasury), [NIST](https://www.bankingnewsai.com/ai-regulation/nist).

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