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ARTICLE · 03 JUNE 2021

Game On: FINRA Hints At Upcoming Gamification Sweep

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To gather industry information, FINRA often issues targeted exam or "sweep" letters to chosen firms engaging in a particular business activity.

United StatesFinance and Banking
Sarah Aberg
Sarah Aberg
Shane J Killeen
Shane J Killeen
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During a May 19, 2021 webcast at the Financial Industry Regulatory Authority's ("FINRA") annual conference, Amy Sochard, FINRA's Vice President of Advertising Regulation, indicated that the organization will seek public feedback on gamification practices utilized by some stock trading platforms to attract investors with a view toward issuing new rules or guidance.  "Gamification" refers to the application of typical elements of game playing, such as point scoring, competition with others, and rules of play, by trading platforms, online retailers or vendors to encourage engagement with a product or service.

Sochard's comments regarding soliciting industry feedback coupled with a warning to conference attendees to look out for further communications from FINRA on the topic suggests an imminent market sweep.  Other conference speakers indicated that any future rulemaking, guidance or regulatory action regarding gamification would be undertaken in conjunction with the

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