The Securities and Exchange Commission sent its strongest signal yet that it plans to toughen rules for online brokers by issuing a wide-ranging request for comment on how the firms use game-like features and other tools to attract investors.
In a statement Friday, the Wall Street regulator said it’s seeking information from market participants, consumer advocates and others on “digital engagement practices” that are closely associated with the mobile phone apps offered by Robinhood Markets Inc. and other companies. The SEC said it’s concerned that such technologies are putting investors at risk.
“While new technologies can bring us greater access and product choice, they also raise questions as to whether we as investors are appropriately protected when we trade and get financial advice,” SEC Chair Gary Gensler said in the statement. “In many cases, these features may encourage investors to trade more often, invest in different products, or change their investment strategy.”
Robinhood’s rapid growth has been fueled by the legions of customers it added during the Covid-19 pandemic and because it’s the go-to destination for investors who want to trade hot meme stocks like GameStop Corp. But those same factors have attracted scrutiny on Capitol Hill, with some lawmakers demanding that the SEC tighten oversight.
The regulator said the comments it receives will allow it to assess whether existing regulations are sufficient or if it should pursue new requirements. The SEC will accept comments for 30 days.
Chicago-based Mesirow Fiduciary Solutions adds flexPATH's plan-level outsourced fiduciary book, boosting its retirement market reach to $164 billion.
Also, Raymond James's employee advisor channel adds breakaways from Wells Fargo and Stifel, while UBS welcomes an ex-Morgan Stanley duo in Indiana.
It promised guaranteed principal and 10% monthly returns. The SEC says it invested nothing.
Ten years after entering the fee-based annuity market, MassMutual Ascend says nearly half its lifetime sales came in the past two years alone – but barriers remain among fee-only advisors.
Amplify, WealthReach, Zeplyn and Zocks have unveiled partnerships aimed at automating portfolio management, content creation, account opening, and client communication.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
