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SEC advisory committee to host meeting on financial literacy, complex investment products

On Behalf of | Dec 4, 2023 | Securities and Compliance

The Securities and Exchange Commission announced details of a virtual public meeting to be held by its Investor Advisory Committee later this week.

The committee focuses on investor-related interests.  It advises the SEC on regulatory priorities and various initiatives to help protect investors and promote the integrity of the U.S. securities markets.

The meeting, scheduled for Dec. 7 at 10:30 a.m., will feature two panel discussions.

The first session will focus on practical applications for enhancing financial literacy.  The second discussion will examine the use of complex investment products and strategies by self-directed investors, while looking at whether the current approach is working.

The advisory committee will also discuss a recommendation by its Disclosure Subcommittee on digital engagement practices (DEPs).  The SEC took up the issue in August 2021 when it requested information and comment on broker-dealer and investment adviser digital engagement practices and use of technology to develop and provide investment advice.

The SEC noted the increased use of DEPs by online trading platforms and mobile apps, including  behavioral prompts, differential and targeted marketing, game-like features, and other design elements to engage with retail investors on digital platforms. The commission said that while these platforms and apps can make investing in securities easier and more accessible, they also often include features
designed to encourage investors to trade more frequently, take more risk, and to manipulate investors’ behavior.

The advisory committee’s meeting on Thursday will be webcast on the SEC website.

The committee, established by the Dodd-Frank Act, is authorized by Congress to submit findings and recommendations to the SEC.

The attorneys at Lewitas Hyman include former senior attorneys at the SEC whose legal experience and industry knowledge make them uniquely qualified to provide counsel on securities regulatory, compliance and enforcement matters. Our attorneys fully understand the regulatory scrutiny financial professionals and their firms face from the various regulators that oversee the financial services industry. If your firm is facing an investigation from a regulatory agency, please contact Lewitas Hyman at (888) 655-6002 or through our online contact form.