Can a firm that sells investment portfolios online be called a robo-adviser?

Not all firms selling investment portfolios online can be called robo advisers.

A robo advice firm provides personal financial advice or personal investment advice. They may also manage your wealth through a managed discretionary account structure or separately managed account structure or individually managed account structure, or through a managed account.

Firms not providing personal financial advice online cannot be called robo-advisers, even if they sell investment portfolios or funds online.

The activity of providing personal financial advice is highly regulated by the regulatory authorities, and a firm that provides personal financial advice should get the necessary licences. So, in effect, every robo advisor must have the licences required to provide personal financial advice.

For example, our firm QuietGrowth provides personal financial advice to retail clients through online web interfaces and mobile apps. So, our firm can be termed as a robo-advice firm. We also manage the wealth of our clients through the managed discretionary account structure.

Also read the answers to the related questions:

• Should a firm that does not offer ‘personal financial advice’ be called a robo advisor?
• Does a robo adviser give personal financial advice?

Additionally, you can consider to read the following knowledge resource:

• Conventionalisation of the new term ‘robo adviser’

QuietGrowth has been publishing content in this blog or in other sections of the website. Contributors for this content may include the employees of QuietGrowth, or third-party firms, or third-party authors. Unless otherwise noted, such content does not necessarily represent the actual views or opinions of QuietGrowth or any of its employees, directors, or officers.

Any links provided in our website to other websites are for the purpose of convenience, or as required by any such other websites. Unless otherwise noted, this does not imply that QuietGrowth endorses, is affiliated, and/or promotes any information, or products or services of those websites. Please read the advice disclaimer section of the website too.