Regulating Robo-Advice: Innovation vs Regulation

Chartered Banker Magazine is the bi-monthly member’s magazine of the Chartered Banker Institute, and “the voice of the profession”. In its July 2016 issue, it features an article on “Robo-Advice: Innovation vs Regulation”, highlighting the fact that the new digital investment models have the potential to disrupt the industry, but regulatory requirements might be a barrier preventing innovative firms to take their solutions to the market.

Our UK Co-Founder and Global CMO Dr. Ella Rabener is quoted in the article. She highlights that being held to the same standards as a traditional financial services provider is essential. However, she does not believe that the term ‘robo-advice’ suitably reflects the products and services being offered. “The biggest challenge at present is that the term itself was imported from the US and is not very relevant when looking at what many so-called robo-advisers do from a regulatory angle.” Most of them, Scalable Capital included, don’t actually offer advice, she says. “As a digital discretionary investment manager we actually disrupt the asset management space, not the adviser space. Already, we have had very positive conversations with traditional advisers about how they could use our service to better enable them to help plug the advice gap.”

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