Oct. 21, 2023
To whom it may concern, I am writing to express my strong opposition to the proposed "Predictive Data Analytics" (PDA) rule by the Securities and Exchange Commission (SEC). This rule, as currently outlined, would impose severe restrictions on the use of technology by financial services firms in their efforts to serve customers effectively. While I understand the SEC's intent to ensure fair and transparent practices within the financial industry, I believe this rule could stifle innovation, hinder efficiency, and ultimately limit the benefits that modern technology can offer to both financial firms and their clients. Here are my key concerns: 1. **Innovation Suppression:** The proposed PDA rule could discourage financial institutions from investing in innovative technologies that can enhance their ability to manage risk, provide better investment recommendations, and improve customer experiences. 2. **Customer Service Impact:** Limiting the use of predictive data analytics may hinder the financial sector's ability to personalize services, manage portfolios effectively, and offer tailored advice to clients, potentially diminishing the quality of customer service. 3. **Competitive Disadvantage:** Imposing stringent restrictions on the use of technology in the financial industry may put U.S. firms at a competitive disadvantage on the global stage, as other regions may continue to adopt and leverage advanced analytics tools. I urge the SEC to consider a more balanced approach that addresses legitimate concerns without stifling the positive impacts of technological advancements. Collaborative efforts between regulatory bodies, financial institutions, and technology experts could lead to a more effective and balanced solution that protects consumers while allowing the industry to thrive. Thank you for your attention to this important matter, and I hope the SEC will carefully reconsider the implications of the PDA rule in light of these concerns. Sincerely, Nicholas Coronado