Robo Advice – DFS 29

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US regulators issue guidance for investment advisers using robo advice 

The US Securities and Exchange Commission (SEC) has issued its first set of guidance for robo advisers, emphasising the need for greater oversight of operations due to the lack of human interaction. The advice specifically points to the risk of cutting off the ability of clients to trade during periods of market stress, which could require human discretion. Additionally, the SEC indicated the importance of taking into consideration cybersecurity threats.