Podcast Center
Video Center
Webcasts
Resource Center
Events
By 
September 30, 2021 at 03:07 PM
What You Need to Know
- SEC Chairman Gensler wants feedback on advisors' and BDs’ use of technologies including apps with gaming features.
- Trading apps, along with falling fees and zero commissions, have broadened access to markets, Sen. Pat Toomey says.
- SEC's mission does not extend to protecting investors from themselves, Toomey says.
Sen. Pat Toomey, R-Pa., ranking minority member on the Senate Banking Committee, urged Securities and Exchange Commission Chairman Gary Gensler on Thursday to “proceed cautiously” and avoid imposing new regulations on digital trading apps that could restrict investor freedom.
“The federal securities laws do not authorize the SEC to act as a merit regulator and limit the choices of investors in the absence of fraudulent or manipulative conduct,” Toomey told Gensler in a letter. “Investors understand that there are consequences — whether they gain or lose — from their investment decisions. It is not the government’s role to tell retail investors what they can and cannot buy, including through indirect measures that restrict how brokers can interact with their customers on digital platforms.”
Toomey was responding to a request for comment issued by Gensler on Aug. 27 seeking information on broker-dealers and advisors’ digital engagement practices, including their use of apps with gaming features.
The SEC, according to Gensler, wants feedback on advisors’ and BDs’ use of new and emerging technologies and how the agency could better protect investors.
