Principles-based rules and AI are redefining compliance expectations
The SEC and FINRA have entered a principle-based regulatory era that demands stronger internal standards, clearer documentation, and greater accountability from firms. At the same time, the rapid rise of AI — from note-taking tools to LLM-powered workflows — is creating new compliance risks, shifting supervision models, and raising questions about data governance and explainability.
This webinar brings together a compliance expert, a technologist, and a regulatory policy voice to help firms interpret the 2026 examination priorities and translate them into actionable plans. Attendees will learn how regulators are likely to evaluate AI use, where ambiguity has increased under principle-based supervision, and what practical steps firms should take now to strengthen documentation, unify data, and ensure their AI policies and controls are defensible in an exam cycle.
Key Themes
- What “principle-based regulation” actually means in day-to-day exams, and why reduced rulemaking does not mean reduced scrutiny.
- How to interpret the 2026 SEC and FINRA priorities through a supervisory and regulatory lens.
- Emerging AI risks: data movement, privacy, explainability, books-and-records impact, and unsupervised LLM use by staff.
- Why acceptable AI-use policies, governance structures, and documentation standards will matter more in 2026 than ever before.
- How fragmented compliance, cyber, and vendor systems increase exam risk — and why unified data is becoming foundational.
- Practical planning guidance for 2026: what firms should prepare, document, and operationalize in Q1 and Q2.
Speakers
- Sid Yenamandra - Sid is the CEO of SurgeONE.ai and a recognized leader in regulatory technology. He has deep expertise in building compliance-focused platforms and advising financial institutions on how to integrate AI while maintaining regulatory trust.
- Melinda (Mimi) LeGaye - Mimi is the CEO and Founder, MGL Consulting, LLC, and a veteran compliance consultant with decades of experience helping RIAs and broker-dealers navigate SEC and FINRA requirements. She is a frequent speaker on regulatory readiness and industry best practices.
- Jeff Kern - Jeff is a partner at Sheppard Mullin, Managing Partner of the firm’s New York office, and head of the Securities Enforcement & Litigation Team. With extensive experience in securities regulation, compliance, white-collar defense, and internal investigations, Jeff has represented broker-dealers and executives in SEC and FINRA matters for over two decades. Previously, he held senior enforcement roles at FINRA and the NYSE, and earlier served as a prosecutor in the Brooklyn District Attorney’s Office.
