Gensler said the online brokerage tools raise questions, including whether:
• So-called digital-engagement practices used by apps and advisers solely benefit clients or also the revenue of the firms -- thereby posing a conflict of interest.
• Investors need protections from nudges and prompts offered by platforms and apps regardless of whether they legally meet the definition of a recommendation under SEC rules.
• Analytical tools “reinforce societal inequities.”
• Historical data used in models mirror longstanding biases.
• Broad adoption of certain types of artificial-intelligence tools could fuel a future financial crisis by increasing concentration.
Bloomberg News contributed to this article.