Automated Advisers

Regulatory Challenges Facing Digital Advisers

Financial regulators are beginning to take notice of digital advisers (sometimes referred to as robo-advisers, automated advisers, or internet advisers). Within a year, the U.S. Securities and Exchange Commission (“SEC”), Financial Industry Regulatory Authority (“FINRA”), and Massachusetts Securities Division (“MSD”) each issued guidance and statements addressing digital advisers. As digital advisers continue to grow in size and number, they will face increased regulatory scrutiny.