The Financial Industry Regulatory Authority, or FINRA, is eyeing online brokerages.
With the concerns around the recent actions that apps such as Robinhood have taken to restrict trading around stocks like GameStop in the past week, online brokerages have caught the attention of regulators and even TReasury Secretary Janet Yellen.
In its 2021 report on "FINRA's Examination and Risk Monitory Program," FINRA said that it plans to "address risks relating to new digital communication channels" as one of its examination priorities
FINRA stated, "This focus includes risks associated with app-based platforms with interactive or ‘game-like’ features that are intended to influence customers, their related forms of marketing, and the appropriateness of the activity that they are approving clients to undertake through those platforms."
So, what does this mean for apps such as Robinhood?