Robo-advice has a long way to go to satisfy regulators' disclosure and suitability requirements, but advisers should view these fledgling services as an opportunity not a threat, argues Adrian Boulding
On May 21 the Financial Conduct Authority (FCA) reported on its findings from a review of seven automated online discretionary investment managers (ODIMs) and automated advice services providers - both known more loosely as robo-advisers. The results look worrying for robo-advice services already up and running and others set to launch in the coming months. There is clearly much more work to do in the areas of customer fact find, charges disclosure, as well as suitability of advice and investment selections for customers. The FCA's main concerns centred around not properly assessing c...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- 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
