The UK Financial Conduct Authority published a report concerning features used in trading apps
UK Financial Conduct Authority published a report concerning features used in trading apps that mislead consumers and lead them to invest in products beyond their risk appetite.
On 21 November 2022 the UK Financial Conduct Authority (FCA) published conclusions from a survey of 3,000 app users and customers of four trading apps. The research also included consumers from a trading app of a more traditional investment platform.
The FCA concluded that consumers using apps with features that include sending notifications with the latest market news, app points, badges, and celebratory messages for making trades were exposed to high-risk investments not consistent with their investor profile. The FCA found that gamification had been used in these apps to mislead consumers. According to FCA, all apps must review their features to comply with regulations coming into force next year.