SEC Eyes Robos in 2017

Note from the Publisher:  In news that will surely make financial advisors across the US jump up and cheer for joy, the Securities and Exchange Commission has added robo-advisors to its list for 2017 examination priorities.  This was bound to happen at some point, and we cautiously applaud the effort.  Cautious because regulators can get into the middle of things and bog them down pretty thoroughly, though we understand their entirely good intentions to protect the investing public.  We’ll wait with baited breath to see how this initiative rolls out in the coming year.   

“For the first time, the Securities and Exchange Commission has included “electronic investment advice,” or advice offered through so-called robo-advisers, to its annual list of examination priorities, highlighting regulators’ concerns about investor risk as digital investment platforms continue to surge in popularity.

The SEC said it would examine registered investment advisers and broker-dealers that offer robo-advice services, putting automated advice first on its list of 2017 exam priorities, released Thursday.

“These priorities make clear we are continuing to focus on a wide range of issues impacting our markets, from traditional areas such as market-wide risks to new forms of technology including automated investment advice,” outgoing SEC Chairwoman Mary Jo White said.”

Read Full Article at InvestmentNews