TY  - JOUR
AB  - Purpose To explain a guidance update issued in February 2017 by the staff of the Division of Investment Management (Staff) at the US Securities and Exchange Commission (SEC) on how robo-advisers may meet their disclosure, suitability and compliance obligations under the Investment Advisers Act of 1940 (Advisers Act).Design/methodology/approach Examines the update’s guidance on three areas – the substance and presentation of disclosures, the provision of suitable investment advice, and the adoption and implementation of effective compliance programs – and then raises practical considerations for robo-advisers.Findings The update reflects the Staff’s increasing concern about the potential risks of the robo-adviser platform and provides a listing of key issues that the SEC’s Office of Compliance Inspections and Examinations (OCIE) – which recently added “electronic investment advice” as a new focus for its 2017 examinations – may zero in on when examining robo-advisory firms.Practical implications Robo-advisers should carefully review the Staff’s update to evaluate whether their firms’ operations address the guidance.Originality/value Practical advice from experienced securities regulatory lawyers.
VL  - 18
IS  - 3
SN  - 1528-5812
DO  - 10.1108/JOIC-06-2017-0035
UR  - https://doi.org/10.1108/JOIC-06-2017-0035
AU  - Monaco Stephanie M.
AU  - Pershkow Amy Ward
AU  - Cruz Leslie S.
AU  - McCamman Peter M.
AU  - Getsinger Andrew D.
AU  - Kanter Adam
PY  - 2017
Y1  - 2017/01/01
TI  - US securities and exchange commission’s division of investment management issues guidance regarding robo-advisers
T2  - Journal of Investment Compliance
PB  - Emerald Publishing Limited
SP  - 26
EP  - 33
Y2  - 2024/04/24
ER  -