Jesse Kanach was quoted in the ACA Insight article, “SEC 2017 Exam Priorities: Robo-Advisers, Money Market Funds, Cybersecurity” regarding the SEC’s Office of Compliance Inspections and Examinations 2017 Examination Priorities list.

Regarding OCIE’s plan to review firms’ compliance practices in regard to their algorithms, “it’s not clear how these advisers will respond to requests for their source code,” said Perkins Coie partner Jesse Kanach. He noted that “a similar proposal at the CFTC has generated controversy for the past year, given managers’ fears that their proprietary and valuable processes could inadvertently become accessible, and simply be copied and used by a third party. The SEC has expressed confidence in its data security, but discussions about these requests could be a high priority for some firms.”