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...

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