If you’re not innovating, are you really in fintech? For the regulators and industry insiders taking part in the “Hot Topics in Fintech” panel at FINRA’s annual conference, the answer was a resounding “heck no.” But with innovation comes the need for regulators to keep up with the speed of tech. And it isn’t always easy.
During the discussion that helped kick off the gathering in Washington, D.C., FINRA officials said the rate of innovation in the industry results in fintech companies coming up with solutions they’ve never seen before, giving them little to no ability to look at similar tech to establish suitable regulation. But by giving FINRA, the SEC and other agencies an early heads up on your next big idea, you can keep yourself from developing something that is going to land you in their regulatory crosshairs, and those keeping an eye on things will have a better idea of where fintech is going next. Check out the full story and additional takeaways from the discussion at Financial Planning.
Speaking of regulatory crosshairs, the SEC once again has robo advisors squarely in its sights. While giving remarks at the North Americans Securities Administrators Association symposium, SEC Chair Gary Gensler said digital engagement practices such as robo advisors and brokerage apps should be closely examined to see if those platforms are putting investor benefit ahead of boosting their own revenues. The concern, he said, relates to potential conflict of interest in those algorithm-driven platforms.
He also compared the “options trading” button in self-directed brokerage apps to “gummy bears in the shopping cart.” I’ll be honest, I’m not sure what he was going for there. But it just made me think of the current recall on Skittles, Starbursts and Life Savers gummies that made headlines this week. I wonder if Gensler and I are getting the same push alerts?
Anything else on your mind? Drop me a line at justin.mack@arizent.com. I love talking to strangers. It’s my job, after all.
Regards,
Justin

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