Dramatic growth of a retail trading app and its acceleration of risky retail transactions appears to have set off alarms at financial regulators, as well as members of Congress. BARRON’S reached out to FrontLine’s Founder and President Amy Lynch to discuss Robinhood, the trading app company, and how the SEC and other regulators would approach an inquiry. Ms. Lynch explains that both the appearance and technology of the app would require a review, as well as what currently exists in terms of appropriate disclosures. However, she notes that current regulations are not necessarily written to be applicable to the app’s structure and how it encourages trading in a gaming type format. See BARRON’S (subscription required), “Robinhood Turned Millions of People Stuck at Home Into Investors. What’s Next for the App?”
