The International Organization of Securities Commissions (IOSCO) published a final report on Digital Engagement Practices (DEPs), setting out proposed good practices to support a more consistent supervisory approach where market intermediaries use digital techniques such as notifications, nudges, gamification, platform design features and differential marketing to engage retail investors. Based on a survey of 30 IOSCO member authorities from 26 jurisdictions, academic literature and industry engagement, the report describes how DEPs can broaden market access and support financial literacy, but may also encourage more frequent or riskier trading, change investors’ strategies without adequate understanding, and create conflicts of interest where engagement is used to drive intermediaries’ revenues. It also flags risks linked to misleading or opaque disclosures, inappropriate “dark patterns”, technology and data quality shortcomings, data confidentiality and cybersecurity vulnerabilities. The proposed good practices cover designing and testing DEPs used for investment advice or recommendations so they operate in investors’ best interests, ensuring appropriate licensing and controls where DEPs may constitute advice, aligning DEP-driven prompts with suitability requirements, strengthening governance and conflicts management, improving point-of-transaction disclosures (including fees and material conflicts), and leveraging DEPs for investor education. The final report reflects feedback from IOSCO’s consultation that ran from 19 November 2024 to 20 January 2025, which received eight stakeholder responses, and retains a principles-based, technology-neutral framing intended to remain workable as DEPs and related technologies evolve.

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