S3:E5 | Time For Some Fun and Gamification | Compliance in Context
Welcome back to Compliance In Context podcast! On today’s show, we’re going to be focusing our attention on gamification—what is it, why are regulators and investors concerned about it, what are the benefits of it, and most importantly, what are the key things you should be considering from a compliance perspective? In our Headlines section, we look at Chair Gensler’s Spring 2022 Agency Rule list, what it means, and the overall impact to the industry. And finally, we’ll wrap up today’s show with another installment of Outtakes where an old compliance violation takes on a brand new look in crypto.
Show
Interview with Tanner Dowdy
Introduction to gamification
Background on relevant factors affecting gamification
Key themes of Tanner’s law review article
The Gamestop phenomenon
Consumer protection and market stability versus freedom of choice and the democratization of the financial markets
Retail traders versus institutional finance
Key harms of gamification and impact of Reg BI
Key benefits of gamification
How gamification impacts the future of the financial markets
Quotes
12:34 – “There is a distinction in academia (based on what I’ve read researching my article)between “gamification” (you know, in air quotes) and, more broadly, digital engagement practices. ... DEPs are a little broader than gamification, you know, robo-advisors would fall into the DEPs. Anything that’s more, pressing the future edge of aligning digital technology with brokerage services or investment advisor services.” – Tanner
17:28 – “Based on my research and what I’ve seen, it depends on who you ask. I think you bring up a great point in that gamification, there are layers of competing interest and so, right off the top, consumer protection versus democratization is the headline one, if you will. Then there is another layer of (you, kind of, hinted at this) retail trader versus institutional finance.” – Tanner