On 21 November 2022, the FCA announced that it has warned stock trading app operators to review design features, including those with game-like elements, which risk promoting consumers to take actions against their own interests.

Features the FCA have warned operators to avoid include, sending frequent notifications with the latest market news and providing consumers with in-app points, badges and celebratory messages for making trades. The FCA has found that consumers using apps with these kind of features were more likely to invest in products beyond their risk appetite.

Furthermore, the FCA has published research that raises concerns that customers using such trading apps are exposed to high-risk investments and that some appear to exhibit behaviours similar to problem-gambling. The FCA adds that it expects all firms that offer stock trading to consumers to review and, where appropriate, make improvements to their products based on these research findings. Such firms should also ensure that they are providing support to their customers, particularly those in vulnerable circumstances or those showing signs of problem gambling behaviour. To ensure customers are being treated fairly and ahead of the new Consumer Duty coming into force next year, all firms should be reviewing their products now to ensure they are fit for purpose.

Sarah Pritchard, Executive Director of Markets at the FCA, said:

‘Some product design features could be contributing to problematic, even gambling-like, investor behaviour. We expect all firms that offer stock trading to consumers to review and, where appropriate, make improvements to their products based on these findings. They should also ensure they are providing support to their customers, particularly those in vulnerable circumstances or those showing signs of problem gambling behaviour.’