SEARCH
ASIC backs compliant robo-advice tools
ASIC backs compliant robo-advice tools
The Australian Securities and Investments Commission (ASIC) has supported the emergence of robo-advice, but has indicated that the tools must meet best-interest requirements.
ASIC executives answered questions about the emergence of robo-advice, including how it fits into the legal landscape, before Senate Estimates in Canberra yesterday.
ASIC commissioner John Price said there is an opportunity for robo-advice tools to provide financial advice, both tailored and general, to a larger group of individuals to the "benefit of all".
However, Mr Price said uncertainty remains around how important legal obligations apply to robo-tools.
"For example, the Future of Financial Advice [FOFA] reforms introduced an obligation for personal advice to make sure advice was in the best interest of the client," he said.
"So how does that translate into a digital environment?"
ASIC deputy chair Peter Kell reiterated that robo-advice needs to meet best-interest requirements.
"We want to make sure that some of the potential new entrants understand that. It's not suddenly the case that new rules apply because you happen to be robo," he said.
"On the other hand there seem to be some very good opportunities for some existing players to incorporate robo-advice into their models and potentially reach a wider audience."
Mr Price added that ASIC's robo-advice taskforce is investigating areas of uncertainty and areas where further guidance is needed. He said the commission is set to release a consultation document with draft guidance in the "not too distant future".
Subscribe to our Newsletter
We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians
Your email address will be shared with nestegg and subject to our Privacy Policy
latest articles
OUR PLATFORMS AND BRANDS
- Accountants Daily
- Accounting Times
- Adviser Innovation
- Australian Aviation
- Broker Daily
- Cyber Daily
- Defence Connect
- Fintech Business
- HR Leader
- Independent Financial Adviser
- Investment Centre
- Investor Daily
- Lawyers Weekly
- Money Management
- Nestegg
- Property Buzz
- Real Estate Business
- Smart Property Investment
- SMSF Adviser
- Space Connect
- Super Review
- The Adviser
- Wellness Daily
- World of Aviation
EVENTS AND SUMMITS
- Accountants Daily 30 Under 30 Awards
- Adviser Innovation Summit
- Australian Accounting Awards
- Australian Aviation Awards
- Australian Broking Awards
- Australian Defence Industry Awards
- Australian Law Awards
- Australian Space Awards
- Australian Space Summit
- Better Business Summit & Awards
- Broker Daily Business Awards
- Corporate Counsel Summit & Awards
- Cyber Security Summit & Awards
- Defence Connect Budget Lunch
- Defence Connect DSR Summit
- Fund Manager of the Year Awards
- ifa Excellence Awards
- ifa Future Forum
- Investor Daily ESG Summit
- Lawyers Weekly 30 Under 30 Awards
- Lawyers Weekly Women in Law Forum
- New Broker Academy
- Partner of the Year Awards
- REB Awards
- Reinnovate
- SME Broker Bootcamp
- SMSF Adviser Technical Day
- Super Fund of the Year Awards
- Women in Finance Awards
- Women in Law Awards
- Accountants Daily Podcast Network
- Australian Aviation Podcast Network
- Broker Daily Podcast Network
- Defence Connect Podcast Network
- HR Leader Podcast Network
- REB Podcast Network
- Relative Return
- Space Connect Podcast
- The Adviser Podcast Network
- The ifa Show
- The Lawyers Weekly Show
- The Smart Property Investment Show
PODCASTS
LEARNING AND EDUCATION
MOMENTUM MARKETS NETWORK
LINKS
STAY CONNECTED
Subscribe to the Adviser Innovation eNewsletter.
