SEC in uncharted waters with “gamification” of trading (BARRON’S)

The SEC’s recent news that it is seeking public comments on the digital engagement practices of broker-dealers and investment advisers will likely lead to a review of certain stock trading apps and gamification methods used with investors. It’s new territory for the SEC, explains Amy Lynch, FrontLine’s Founder and President. Ms. Lynch notes that regulations have not been written to address the types of issues the SEC may uncover looking at the technology and its graphic interfaces, as well as other areas such as machine learning and artificial intelligence. A question the SEC would seemingly like to answer is whether the firms’ use of certain digital practices rise to the level of investment advice, and how that may be coercing users into making bad decisions. See BARRON’S (subscription required), “SEC’s ‘Gamification’ Review Will Examine Stock App Designs”