Yvonne Dunn: Robo-advice debate risks hampering innovation

Advice/guidance fixation must end

clock • 4 min read

Innovation in robo-advice solutions in the UK could be hampered if there is a never-ending debate on whether they involve the provision of regulated financial advice or merely guide consumers, writes Yvonne Dunn.

Robo-advice tools have the potential to help address the UK's ‘advice gap', which was highlighted in the Financial Advice Market Review (FAMR) published earlier this year. The term refers to the number of consumers who need help selecting retail investment products to put their money into but who cannot afford to pay, or elect not to pay, for regulated financial advice. Figures in 2015 showed there was appetite in the UK market for greater regulatory clarity on the use of robo-advice solutions. From autumn 2014 up until 19 August 2015, the Financial Conduct Authority (FCA) received 39 re...

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