Before your robo-adviser can accept its first client, it must be registered. Like other investment advisers, robo-advisers have two possible initial registration pathways. They either register with the SEC or they register with the state(s) where they maintain a place of business. Due to the additional complexity associated with state registration, most robo-advisers seek to qualify for SEC registration from the start. Here’s how you can do the same.
First, let’s talk about how the…
All investment advisers must provide advice suitable for a particular client based on the client’s financial situation and investment objectives. Traditional investment advisers usually do this after getting to know their clients through conversations and other forms of direct communication. Robo-advisers, by contrast, must accomplish this through other means. Given this universal duty, it’s important for robo-adviser firms to not simply be aware of their fiduciary duty, but to contemplate how their client interaction differs…
Thanks for taking the time to check out our first of many blog posts designed to help robo-advisers operate more efficiently, reduce business risk, and comply with applicable law.
To start, when we say “robo-advisers” or “you,” we mean registered investment advisers that use technology to provide discretionary asset management services to their clients through online algorithmic-based programs. Robo-adviser clients enter personal information and other data into an interactive, digital platform like a website or…
