Robo-advisers financially unviable and flouting FCA rules, SCM warns

Investment management firm SCM Direct said current robo-advisers were ‘wired' to lose money and may go bust before ever acquiring the sizeable assets under management required to ensure their sustainability. The propositions also sway between guidance and advice, many without holding the relevant regulatory permissions, the research said. The firm warned far from being the solution to closing the ‘advice gap', robo-advice could be the "next misselling scandal" and urged the Financial Conduct Authority (FCA) to conduct a review of the sector. The regulator threw its weight behind ro...