S3:E5 | Time For Some Fun and Gamification

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