Robo-advice: The hidden dangers lurking under the bonnet

Tim Sargisson on the rise of the robots

clock • 3 min read

Tim Sargisson assesses the efficacy of robo-advice and warns that when it comes to technology things can, and do, go wrong

I was interested to read Treasury and City minister Harriett Baldwin's comments about whether the automated advice offerings promoted in the Financial Advice Market Review (FAMR) will end up creating problems for consumers. Suffice to say that the minister remains upbeat about the efficacy of ‘robo-advice' -as befits somebody who spearheaded the FAMR last year. We are told that automated advice models will be subject to exactly the same, high regulatory standards as other forms of advice, and the FCA has said in its recent business plan it is to establish an advice unit that will help...

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 Regulation

Regulatory and employment-related changes – what do firms need to prepare for?

Regulatory and employment-related changes – what do firms need to prepare for?

‘Getting these issues right is not just about avoiding regulatory action or tribunal claims’

Sophie White
clock 21 August 2025 • 4 min read
FOS fees could fall if cases resolved early

FOS fees could fall if cases resolved early

Consultation seeking to modernise charges

Jenna Brown
clock 13 August 2025 • 2 min read
Consumer Duty two years on: Challenges remain for advisers

Consumer Duty two years on: Challenges remain for advisers

‘Biggest challenge for advisers at the moment'

Sahar Nazir
clock 31 July 2025 • 4 min read