10.12.21
SEC to Assess When "Psychological Nudges" Become Recommendations
by: Mark Schoeff, Jr.
SEC Chair Gary Gensler said Tuesday the agency will assess whether nudges on digital platforms that affect investor behavior should be regulated as investment recommendations. In remarks during the online SEC Speaks conference hosted by the Practising Law Institute, Gensler said digital engagement practices used by financial platforms go beyond “gamification” and incorporate predictive analytics that raise questions about potential conflicts of interest, such as whether the sites are trying to optimize investors’ returns or their own revenue lead to higher returns.” Gensler didn’t mention Regulation Best Interest by name, but the implication is that the measure could be applied to online brokers if their investor encouragement is deemed a recommendation.
Read the full article on InvestmentNews