Robo-advice – The regulator’s choice?
He did happen to work for a big investment company that is very keen on robo-advice, so perhaps he was writing from close personal experience of both sides of that view. But it is an interesting question: will robo-advice become the ‘regulator’s preferred advice model’?
Well right now, it can’t be – the Financial Advisers Act (FAA) is designed so that only registered natural people can give financial advice (although there is limited scope for a company to have a view about its own products in the form of class advice).
That might change through the current review of the FAA with the possibility of companies giving advice being raised in the consultation document. You can imagine that under such circumstances the worries of whether a compliance step, process, or document was properly completed or provided will come down to a matter of record: data, emails, and so on.
It sounds so wonderfully efficient.
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