FTA Comment Letter on Broker-Dealer and Investment Adviser Digital Engagement Practices
The Financial Technology Association (FTA) submitted a comment letter in response to a Request for Information and Comments on Broker-Dealer and Investment Adviser Digital Engagement Practices issued by the U.S. Securities and Exchange Commission.
The letter reads in part:
FTA appreciates the opportunity to respond to this request for comment on a broad range of topics involving digital engagement practices, the application of emerging technologies, and the growth of digital investment advisers. The breadth of topics raised underscores how technology has impacted and, in many instances, enhanced the financial industry. Financial technology is consistent with the SEC’s tripartite mission of protecting investors, maintaining fair, orderly, and efficient markets, and facilitating capital formation.
In particular, fintech has had a substantial positive impact on financial markets and introduced new categories of financial services, increased competition, and efficiency, lowered investor costs and expanded market participation. The growth of fintech has helped to facilitate wealth creation for millions of Americans over the last decade, and future innovation holds substantial promise in helping to close the wealth gap in the United States. Allowing fintech to continue innovating furthers the SEC’s mission and supports economic growth and long-term wealth creation.
FTA welcomes the Commission’s effort to begin gathering information on digital engagement practices and emerging technologies through this request. FTA respectfully cautions the Commission against regulating innovation rather than conduct and against penalizing digital firms relative to traditional firms. Technology-targeted regulation may fail to solve identifiable investor harms and will limit or unnecessarily steer further innovation.
FTA Comment Letter on Broker-Dealer and Investment Adviser Digital Engagement Practices
The Financial Technology Association (FTA) submitted a comment letter in response to a Request for Information and Comments on Broker-Dealer and Investment Adviser Digital Engagement Practices issued by the U.S. Securities and Exchange Commission.
The letter reads in part:
FTA appreciates the opportunity to respond to this request for comment on a broad range of topics involving digital engagement practices, the application of emerging technologies, and the growth of digital investment advisers. The breadth of topics raised underscores how technology has impacted and, in many instances, enhanced the financial industry. Financial technology is consistent with the SEC’s tripartite mission of protecting investors, maintaining fair, orderly, and efficient markets, and facilitating capital formation.
In particular, fintech has had a substantial positive impact on financial markets and introduced new categories of financial services, increased competition, and efficiency, lowered investor costs and expanded market participation. The growth of fintech has helped to facilitate wealth creation for millions of Americans over the last decade, and future innovation holds substantial promise in helping to close the wealth gap in the United States. Allowing fintech to continue innovating furthers the SEC’s mission and supports economic growth and long-term wealth creation.
FTA welcomes the Commission’s effort to begin gathering information on digital engagement practices and emerging technologies through this request. FTA respectfully cautions the Commission against regulating innovation rather than conduct and against penalizing digital firms relative to traditional firms. Technology-targeted regulation may fail to solve identifiable investor harms and will limit or unnecessarily steer further innovation.
Read the full comment letter here.