What do the recent SEC robo guidelines mean for advisors?

New SEC guidance provides effective ways for advisors to comply with disclosure regulations

Kevin Cimring 001Robo-advisors continue to represent a fast-growing trend in the investment advice industry, changing the way firms engage with and service their clients. However, given the automated and online nature of their business models, there are unique considerations for robo-advisors when complying with traditional regulations.

Following collaboration with industry participants, the Securities and Exchange Commission’s (SEC) Division of Investment Management released a Guidance Update1 on February 23, which includes suggestions to help robo-advisors meet disclosure, suitability and compliance obligations under the Investment Advisers Act of 1940 (IM Guidance Update No 2017-2).

The result of this collaborative approach is

Continue