The New Jersey Bureau of Securities announced its 2026 annual investment adviser examination, with a particular focus on firms' use of artificial intelligence and cybersecurity protocols. The examination requires nearly 800 registered investment adviser firms to answer questions about AI use in portfolio management, data protection policies, and third-party vendor due diligence. Failure to comply may result in administrative action.
Firms must complete the electronic examination by June 30, 2026, providing detailed responses about AI use, cybersecurity policies, employee training, and third-party vendor due diligence. Non-compliance may lead to administrative action.
In-house legal teams should review vendor agreements with third-party service providers, particularly those handling client data or providing AI tools. Key clauses to examine include data protection and cybersecurity requirements, vendor due diligence obligations, and provisions for periodic security audits. Additionally, customer agreements should be reviewed for disclosures about AI use in investment recommendations and data handling practices. Employee contracts and training policies should also be updated to reflect new cybersecurity and AI compliance requirements.
Entity
New Jersey Bureau of Securities
Industry
Financial ServicesOfficial Press Release
https://www.njoag.gov/new-jersey-bureau-of-securities-annual-examination-of-investment-advisers-will-look-closely-at-ai-and-cybersecurity/
Investment Adviser Written Examination.aspx
https://www.njconsumeraffairs.gov/bos/Pages/Investment-Adviser-Written-Examination.aspx
New Jersey Attorney General Enforcement Page
https://www.njoag.gov/about/divisions-and-offices/division-of-consumer-affairs/
"New Jersey Bureau of Securities"
"N.J.A.C. 13:47A-14.16"
"the examination takes a close look at the use of Artificial Intelligence (AI) in the construction of investment portfolios or recommendations to clients"
"The examination also focuses on online data protection, seeking to determine whether firms have written policies and procedures on cybersecurity"
"Each registered investment adviser is required to complete the examination in the electronic format provided no later than June 30, 2026"
A multistate coalition co-led by New Jersey won a federal court order rejecting the Trump Administration’s decision not to request funding for the CFPB. The order struck down that decision and directed the Administration to follow the law and fund the agency; no monetary penalty or privacy violation is described.
New Jersey’s Attorney General and Division of Consumer Affairs alerted the public that three synthetic kratom-related compounds became illegal to possess or sell in the state under a temporary federal scheduling order. The release describes a controlled-substance alert, not a privacy enforcement action, and identifies no company, privacy violation, or monetary penalty.
$2.3M
Laboratory Corporation of America Holdings agreed to pay $2,287,455 to participating states and strengthen its security and vendor-management practices following an investigation into the 2019 breach at its debt-collection vendor, AMCA. The breach potentially exposed information of more than 27.5 million people nationwide, including sensitive information belonging to approximately 10.2 million LabCorp patients.
$694.0M
New Jersey's Attorney General and Division of Consumer Affairs, along with 41 Attorneys General, reached a $694 million settlement with subprime auto lender Credit Acceptance Corporation over allegations it originated unaffordable loans its own systems predicted borrowers could not repay, employed aggressive debt-collection tactics, and failed to prevent deceptive vehicle-service contract and GAP product 'packing' by dealers. The multistate settlement stepped in after the CFPB permanently dropped its 2023 enforcement action against CAC in 2025. CAC will provide $60 million in cash restitution, $634 million in debt relief, an additional $15 million to the states, and implement injunctive lending reforms including loan off ramps, pre-loan disclosures, add-on packing safeguards, and a seven-year vehicle price cap. Note: this is a consumer-protection lending enforcement action, not a privacy matter; violation categories are best-fit mappings from the available taxonomy.
$650K
The New Jersey Attorney General and Division of Consumer Affairs announced that Match Group, Inc. will pay $650,000 and change its business practices to settle allegations that it misrepresented or failed to disclose its criminal background screening policies and practices to New Jersey users, violating the New Jersey Consumer Fraud Act and the Internet Dating Safety Act. Under a Consent Order, Match must accurately represent its screening policies, notify existing New Jersey members of updated disclosures within 150 days, and post clear and conspicuous disclosures and safety notifications about the limitations of criminal background screenings.
$96.5M
New Jersey and a coalition of states and territories obtained preliminary approval for a plan to distribute funds from settlements with generic drug manufacturers accused of conspiring to raise drug prices. The settlements total approximately $96.5 million, and eligible consumers may submit claims for compensation.