CNMV Uses AI to Enhance Oversight of Investment Advertising

Spain's National Securities Market Commission (CNMV) has completed a review of advertising by asset management companies using an artificial intelligence (AI) tool to help assess compliance with regulatory requirements.

The pilot initiative analysed promotional content published on firms' websites and in the media, enabling the regulator to identify advertising activity more efficiently and assess whether marketing materials complied with applicable standards. The CNMV said the trial demonstrated the potential of AI to enhance supervisory processes and that it intends to expand its use in future monitoring activities.

The review focused on whether advertisements were clear, balanced and fair, with particular attention given to marketing that highlighted potential returns without adequately disclosing associated risks. The regulator also examined the presentation of historical and projected performance to ensure it complied with regulatory requirements.

A total of 40 asset management firms, including Collective Investment Scheme Management Companies (SGIICs) and Closed-Ended Investment Entity Management Companies (SGEICs) that market products directly to retail investors, were included in the review.

The CNMV identified deficiencies at 10 firms and investment vehicles, requiring them to address the issues and strengthen internal controls governing future advertising and promotional materials. The regulator said it will continue monitoring the implementation of these corrective measures.

The initiative forms part of the CNMV's broader Helix Plan, which aims to accelerate the regulator's digital transformation and improve supervisory effectiveness through the adoption of advanced technologies such as AI.