For years now BETTER FINANCE has been calling for Capital Markets to be returned to their natural participants: European households and EU Citizens as individual long-term savers and investors. Robo-advice could pave the way for their return, provided the platforms abide by EU investor protection rules and comply with basic requirements such as fair, transparent, clear and non-misleading investor information.
Over the last decades individual investors have been gradually driven out of equity markets and pushed into underperforming packaged products. These complex products with multiple layers of high and opaque fees have eroded trust in capital markets, leaving individual European long-term savers with poor returns on their investments and destroying the purchasing power (real value) of people’s savings.
Robots to the Rescue
BETTER FINANCE, therefore, has been keeping an eye on the continuous expansion of automated investment advice. In the ongoing environment of low capital market returns these new players could make a real difference on the actual performance of financial advice and investment management.