Compliance Framework
How ReguScan Aligns with Regulatory Requirements
Regulatory Alignment
ReguScan's compliance scanning engine is designed to help registered investment advisers meet their obligations under key SEC and FINRA regulations. Our audit logic is continuously updated to reflect the latest regulatory guidance and examination priorities.
SEC Marketing Rule 206(4)-1
Detects misleading statements, unsubstantiated performance claims, and missing required disclosures in marketing materials.
SEC Cybersecurity Rule
Identifies missing cyber-governance disclosures and AI model data handling procedures.
Regulation Best Interest (Reg BI)
Validates that AI-related recommendations are accompanied by appropriate disclosures and conflict of interest statements.
FINRA Regulatory Notice 21-29
Flags AI-washing language and ensures compliance with FINRA guidance on digital communications.
2026 SEC Examination Priorities
The SEC has identified AI-washing and algorithmic trading disclosures as key examination priorities for 2026. ReguScan's scanning engine specifically targets these areas:
- Vague AI Claims: Detects unsubstantiated references to "AI-powered," "machine learning," or "algorithmic" strategies without specific methodology disclosures.
- Performance Advertising: Identifies hypothetical performance claims lacking required disclaimers and supporting data.
- Human Oversight: Checks for adequate disclosure of human-in-the-loop protocols for AI-driven investment decisions.
- Model Risk: Flags missing disclosures about model limitations, data sources, and validation procedures.
- Vendor Due Diligence: Verifies disclosure of third-party AI vendor relationships and oversight procedures.
Our Methodology
Automated Web Scraping
We scan your publicly available marketing materials, including website content, Form ADV Part 2A, and promotional materials.
Natural Language Processing
Our AI analyzes text for regulatory red flags, AI-washing language patterns, and missing required disclosures.
Regulatory Cross-Reference
Findings are mapped to specific regulatory requirements, including rule citations and examination guidance.
Risk Scoring
Each finding is assigned a severity level (High/Medium/Low) based on potential regulatory impact.
Remediation Resources
When you purchase access to our compliance materials, you receive:
- Form ADV Item 8 Templates: Pre-written disclosure language for algorithmic trading and AI oversight
- Remediation Workflows: Step-by-step guidance to address identified deficiencies
- Examination-Ready Documentation: Templates suitable for SEC examination presentation
- Vendor Due Diligence Checklist: Questions to ask third-party AI vendors