Panel Discussion: Examining the New Frontier for Investment Advice

As noted in recent studies by CFA Institute and FINRA, many young investors and investors of color are getting increasingly involved in the securities markets. However, these newer investors are accessing investment advice in non-traditional ways, specifically through social media. The FINRA Foundation found that 60% of investors younger than 35 are getting investing information from social media. The Investors of Color study found that these investors are more likely than white investors to rely on social media, mobile trading apps and online videos for investment advice. While there is undoubtedly helpful and educational information available through social media, some “finfluencers” are promoting strategies that are inappropriate for many investors. These platforms have very low barriers to entry, making them appealing to scammers as well as people that have hidden agendas and/or undisclosed conflicts. The Investor Advisory Committee panel will explore whether the existing regulatory framework is sufficient to protect investors obtaining investment advice through social media.

Moderated by:

• Paul F. Roye, Retired, Former Senior Vice President, Capital Research and Management Company; Moderator of the Investor Advisory Committee Access and Inclusion Working Group; Vice Chair of the Investor Advisory Committee Disclosure Subcommittee

Panelists:

• Kim Clark, Senior Associate Editor, Kiplinger Personal Finance, Article
• Jeff Fauci, Chief Counsel for the Department of Enforcement, FINRA
• Robert Plaze, Retired, Former Partner, Proskauer Rose, LLP
• Rhodri Preece, CFA, Senior Head of Industry Research, CFA Institute, Report, Presentation

Panel Discussion: AI Regulation: Embracing the Future

The rapid advancements in AI technologies have brought about significant benefits and challenges for companies, investment managers and other market participants. As AI becomes increasingly integrated into various sectors, it is crucial to address key issues related to disclosures, and other important aspects of AI such as data controls, bias, and education to ensure ethical and responsible AI practices within the existing regulatory framework and within any new guidance or rules. This panel aims to discuss and provide insights on how the SEC may promote the advancement of AI by helping practitioners navigate these critical aspects.

Moderated by:

• James Andrus, Vice President, Sustainability Global Markets, Franklin Templeton; Chair of the Investor Advisory Committee Investor as Owner Subcommittee

Panelists:

• Brian T. Croteau, CPA, US Chief Auditor and Auditing Services Leader, PricewaterhouseCoopers, LLP, Presentation

• David Danks, Professor of Data Science & Philosophy, University of California, San Diego

• Diane Janvrin, Professor of Accounting, Iowa State University

• Richard F. Kerr, Partner, K&L Gates, LLP, Article, Presentation

• Andrew Kou, Chief Technology Officer, OWL ESG, Inc., Presentation

• Di Rifai, Founder & Chair, Creating Future Us, Presentation

Discussion of a Recommendation Regarding the Protection of Self-Directed Investors When Trading Complex Products and Utilizing Complex Strategies

Discussion of a Recommendation on Financial Literacy and Investor Education

Closing Remarks