Honeymoon over for robo advice
By Tom Carnegie, 24 May 18
The UK’s Financial Conduct Authority (FCA) has made it clear it will hold robo advice firms to the same high standards as human advisers, with experts saying the honeymoon is now over for those trying to curb the rules.
In a report released on 21 May, the FCA said it has reviewed seven firms offering automated online discretionary investment management (ODIM), and three firms providing investment advice through automated channels.
The damning report accused the firms of multiple failings, including using unclear charging structures and failing to protect vulnerable clients.
Industry experts have told International Adviser the report is a wake-up call for the industry, and robo firms cannot expect to have lower standards by saying they are “non-advised”.
Click through the slides to see comment from:
- Finance & Technology Research Centre
- Global legal business DWF
- Old Mutual Wealth