Robo-Advisers and the Suitability Requirement: How They Fit in the Regulatory Framework

Tuesday, July 3rd, 2018 at 9:27 am by Caelainn Carney

Robo-advisers, which provide algorithmic investment advice, are becoming increasingly prevalent players in the financial services industry. As their prominence grows, regulators are working to determine where they fit in the current framework. Specifically, the Securities and Exchange Commission has been working toward setting standards for robo-advisers as they seek to provide suitable advice to investors. In November 2016, the Securities and Exchange Commission held its Fintech Forum, where regulators and industry leaders commented on the suitability requirement and how robo-advisers can meet it. This Note analyzes the current regulatory framework for robo-advisers and proposes ways that regulators can tailor the suitability requirement to digital investment advice.

 

Read the full Note.

Author Information

Caelainn Carney is a J.D. Candidate 2019, Columbia Law School; B.A. 2016, University of Virginia.