With attention trained on the impact of game-like and social media-driven trading, regulators are expected to tamp down on features intended to encourage retail investor activity — but their hands may be tied, industry experts say.
Policing the development of trading platforms could be difficult, however, “because there’s innovation going on probably at a greater pace than FINRA has seen in quite some time,” says Stephen Murphy, Managing Director at Foreside.
FINRA’s recently released report on examinations and risk monitoring states that it will continue to scrutinize firm’s communications with the public and game-like design elements and how they must comply with Reg BI.
Stephen shared with Financial Advisor IQ that financial advisors may find themselves frustrated by the proliferation of investment advice being doled out online, particularly coming from individuals not registered to give financial advice. Click here to read the full story.