BETTER FINANCE was quoted in Funds Europe on its research on robot advisers. Indeed the research says that nearly all robot advice providers in Europe were registered as financial advisers but that many were also registered as asset managers or had a contractual relationship with a registered investment company.
“Therefore, terms such as ‘robot investing’ or ‘robot investment management’ would designate this emerging business more appropriately,” commented BETTER FINANCE.
European regulators should more precisely define “investment advice” and, more specifically, the definition of “personal recommendations”, better describing what financial advice is meant to be in the Markets in Financial Instruments Directive, BETTER FINANCE says.
The research also found that robot-adviser fees were much higher in Europe than in the US, but compared favourably to traditional adviser fees. Part of the reason is that robot-advisers are still in start-up mode in Europe compared to the US, where they have been around longer.
BETTER FINANCE is favourable towards robot-advisers, stating that in an environment of low capital market returns, these new players could make a “real difference on the actual performance of financial advice and investment management and protect the real value of people’s savings”.
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