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...

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