Majority of advisers see robo-advice as future 'regulatory risk'

40% believe robo is a threat to business

Hannah Godfrey
clock • 2 min read

Advisers are worried the expansion of robo-advice could mean potential future regulatory issues for their business, while also failing the deliver to best outcomes for clients, research from Prudential has found.

In its second annual Adviser Barometer survey, the pension provider found so-called robo-advice is still a contentious subject among advisers. For instance, just over two-fifths (41%) are planning to launch robo solutions for clients, yet almost the same amount (44%) have chosen to steer clear. Some two-thirds (67%) of the 101 surveyed advisers are worried robo-advice could bring regulatory or compliance issues, two-fifths (40%) said robo-advice was a threat to their business, and more than half (54%) saw it as an option suitable only for clients with small funds. However, nearly h...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Technology

Countdown to pensions dashboard connection staging dates

Countdown to pensions dashboard connection staging dates

But will schemes and providers be ready?

Paul Muir
clock 25 April 2024 • 9 min read
Defaqto CEO: We want to understand advisers' needs even more

Defaqto CEO: We want to understand advisers' needs even more

‘Everybody is genuinely working to make better financial decisions’

Hope Coumbe
clock 20 December 2023 • 8 min read
Robo advice market predicted to hit £4.6trn in the next four years

Robo advice market predicted to hit £4.6trn in the next four years

Survey says ‘robo advice is gaining momentum and doing so at speed’

Hope William-Smith
clock 10 July 2023 • 1 min read