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.
From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.
Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.
“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.
Sellers shift focus: It's not about succession anymore.
Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.
RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.
As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.
