Behavioral Economics: The Next ‘New’ Thing at the SEC?

Recent reports from the Securities and Exchange Commission indicate a growing interest in “behavioral economics” in the rule-making process—particularly in its effort toward a fiduciary standard for broker-dealers67 SLD, 4/7/16, 48 SRLR 730, 4/11/16). The social science research about executive and organizational behavior is apparently getting the attention of the enforcement staff, too. Financial Industry Regulatory Authority has followed suit. Rick Ketchum, FINRA’s out-going chief executive officer, said recently that understanding firm culture can be aided by looking at the scientific research, now that culture is on its examination and (presumably) enforcement agenda 48 SRLR 1086, 5/30/16, 100 SLD, 5/24/16, See previous story, 05/24/16