The Regulation of Digital Investment Advice

Digital investment advice, or robo-advice, is a growing trend in the financial services industry. It is expected that by 2022, robo-advisers will manage over $4 trillion in assets. Robo-advice covers a wide range of services, however all involve advice derived from algorithms. This article will discuss what robo-advice is as well as how it is regulated by the SEC and FINRA

Unconventional Methods for a Traditional Setting: The Use of Virtual Reality to Reduce Implicit Racial Bias in the Courtroom

The presumption of innocence and the right to a fair trial lie at the core of the United States justice system. While existing rules and practices serve to uphold these principles, the administration of justice is significantly compromised by a covert but influential factor: namely, implicit racial biases. These biases can lead to automatic associations between race and guilt, as well as impact the way in which judges and jurors interpret information throughout a trial. Despite the well-documented presence of implicit racial biases, few steps have been taken to ameliorate the problem in the courtroom setting. This Article discusses the potential of virtual reality to reduce these biases among judges and jurors. Through analyzing the various ethical and legal considerations, this Article contends that implementing virtual reality training with judges and jurors would be justifiable and advisable should effective means become available. Given that implicit racial biases can seriously undermine the fairness of the justice system, this Article ultimately asserts that unconventional de-biasing methods warrant legitimate attention and consideration

Dark Patterns in the Design of Games

Game designers are typically regarded as advocates for players. However, a game creator’s interests may not align with the players’. We examine some of the ways in which those opposed interests can manifest in a game’s design. In particular, we examine those elements of a game’s design whose purpose can be argued as questionable and perhaps even unethical. Building upon earlier work in design patterns, we call these abstracted elements Dark Game Design Patterns. In this paper, we develop the concept of dark design patterns in games, present examples of such patterns, explore some of the subtleties involved in identifying them, and provide questions that can be asked to help guide in the specification and identification of future Dark Patterns. Our goal is not to criticize creators but rather to contribute to an ongoing discussion regarding the values in games and the role that designers and creators have in this process

You Say Fiduciary, I Say Binary: A Review and Recommendation of Robo-Advisors and the Fiduciary and Best Interest Standards

Automated investment advice platforms, also known as “roboadvisors”, are investment advice tools that have quickly grown in popularity over the last decade. These sophisticated software platforms allow individuals to receive low-cost financial advice about various financial planning goals, such as creating or adjusting investment portfolios, retirement planning, education funding, and the like, simply by entering asset and demographic information into an online platform. The robo-advisors automatically generate the financial advice based on the data inputs with little to no involvement from a human financial advisor. The allure of these low-cost, easily accessible robo-advisors has captured a large segment of the consumer market. As robo-advisors grow, the regulatory outlook for investment advisors is changing. The scope of fiduciary duty is encompassing more and more areas of financial advice. In addition, a newcomer onto the liability field, known as the “best interest” standard, has elevated the liability standard for broker-dealers to a fiduciary-like status. This has created a contrast between automated, generic advice and the regulatory push towards personalized, fiduciary advice. In this paper, we determine whether robo-advisors are able to meet the liability standards set forth by regulators and recommend the ways in which robo-advisors can best serve consumers. We first discuss the fiduciary and best interest standards for investment advisors in depth by reviewing statutory language, whitepapers and guidance issued by various regulating bodies, and thought leadership put forth by industry experts. Next, we evaluate whether robo-advisors are able to meet these standards by reviewing guidance from regulatory agencies and commentary from thought leaders, peer-reviewed articles, and regulators. We find that robo-advisors can meet the fiduciary standard when providing limited-scope investment advice, and can meet the best-interest standard in most cases. However, robo-advisors may not rise to a fiduciary level when providing broad, comprehensive financial advice, such as preparation of an estate plan, retirement plan, or overall wealth management. In our conclusion, we propose a clarification of regulatory language to 1) recommend the specific services for which robo-advisors are best or bettersuited compared to human investment advisors, and 2) prohibit roboadvisors from performing services for which they are ill-suited

Insurer Climate Risk Disclosure Survey: 2012 Findings and Recommendations

2012 was the warmest year on record in the Lower 48 states and the second most extreme weather year in U.S. history. This is not a coincidence. Extreme weather -- stronger, more damaging storms, unprecedented drought and heat in some regions and unprecedented rainfall and flooding in others -- are the predictable consequences of rising global temperatures.Eleven extreme weather events each caused at least a billion dollars in losses last year in the United States. A single event, Hurricane Sandy, caused more than $50 billion in economic losses. Insurance companies are on the hook for tens of billions of dollars in claims as a result of Sandy and other severe weather events. And American taxpayers are on the hook for tens of billions of dollars themselves, thanks to losses sustained by the National Flood Insurance Program as well as disaster relief spendingThis raises a fundamental question: Is the insurance industry prepared? Have insurers analyzed and measured their climate-related risk? Are they planning for life in a warmer world? These should be essential questions for insurance regulators in all 50 states to be asking, and some are