The Emerging Regulation of Robo-Advisers: Practical Advice

Automated investment advisory services, a.k.a. "robo-advisers," are expanding in their reach and scope. They offer many potential gains to investors, as well as the prospect of changing both the nature of investment advice and the way it is delivered for a significant portion of the investor community. Thus, it is not surprising that they have captured the attention of the U.S. Securities and Exchange Commission (SEC), which is applying and adapting the investor protection framework of the Investment Advisers Act to automated advisers. The SEC has formed a FinTech working group and last year hosted a FinTech Forum focused, in part, on automated investment advice. Significantly, in February the SEC staff published a Guidance Update that identifies three broad regulatory areas raised by automated advice – (1) disclosure, (2) suitability and (3) effective compliance programs – and provides suggestions on addressing them.

In this webinar, our panelists discuss the SEC Guidance Update and the issues it raises, as well as their assessment of the regulatory landscape for automated advisers. They also provide practical advice for understanding, navigating and potentially shaping this landscape.