In a rather unusual case of in-house counsel embracing new agency guidance, top legal and compliance chiefs at companies with robo-adviser offerings seem to agree that the U.S. Securities and Exchange Commission’s new guidelines for robo-advisers further legitimize their industry.
The commission issued guidance for automated investment advisers, better known as robo-advisers, on Feb. 23. The 15-page guidance solidified robo-advisers’ fiduciary obligations and set ground rules for disclosures, suitability and compliance programs for companies that operate algorithm-based wealth management services rather than using human financial planners exclusively or at all.
