On February 23, 2017 the Staff of the SEC’s Division of Investment Management released “suggestions” on how robo-advisers meet their obligations under the Investment Advisers Act of 1940 (“Advisers Act”).   The Staff noted that their guidance was intended for robo-advisers that “provide services directly to clients over the internet” but noted that the guidance could be useful to other types of robo-advisers.

The Staff categorized its guidance into the following three areas:

  • Disclosures to clients;
  • Information required to provide suitable advice;
  • Effective compliance program designed to address automated advice.

Click here to read the full post on our sister blog, Derivatives and Repo Report.