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Monday, April 4, 2016|
Uh-Oh! Are Robos No-Go In MA?
Roboadvisors are facing skepticism from a top government official in a state that's full of fundsters.
"Fully automated robo-advisers, as currently structured, may be inherently unable to carry out the fiduciary obligations of a state-registered investment adviser," the statement reads. "Until regulators have determined the proper regulatory framework for automated investment advice, robo-advisers seeking state registration in the Commonwealth will be evaluated under the foregoing guidance on a case-by-case basis."
Robo-advisers in the Commonwealth cannot fully satisfy their fiduciary obligations if they fail to perform the initial and ongoing due diligence necessary to act in the best interests of their clients. Specifically, robo-advisers' failure to conduct due diligence, as well as robo-advisers' depersonalized structure, may render them unable to provide adequately personalized investment advice and make appropriate investment decisions ...
Bloomberg, Boston Business Journal, Financial Planning, and InvestmentNews all picked up on Galvin's warning to roboadvisors.
Printed from: MFWire.com/story.asp?s=53752
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