One popular term that has emerged since 2010 from the increasing adoption of automation in the financial world is ‘robo advisor’. The term is now synonymous with automated personalised investment advice and optional automated discretionary investment management.
Robo advice refers to the service of providing financial advice using algorithms and automation and without the direct involvement of a human adviser during the act of providing that financial advice.
As we are aware, there is no regulatory rule in Australia that explicitly states that a financial services firm that does not offer ‘personal financial advice’ should not be called a robo advisor. However, we at QuietGrowth find it
Robo advice, digital advice and automated advice are the same, as per the Australian regulatory authority ASIC. These terms refer to the service of providing financial advice using algorithms and technology, and
Every person needs a decent-quality financial adviser, if not a high-quality financial adviser. If you do not have a complex financial situation, here’s the question you need to consider: “Is the fee that I should pay to avail the services of a financial adviser justified for the amount of my wealth she manages?”
If a firm categorises itself as a robo-adviser, we believe the firm should give personal financial advice. That is, if a firm that identifies itself as a robo-adviser cannot provide personal financial advice, then our view is that it cannot be termed a robo-adviser.
If you are an expert in investing, have the time needed to do regular research, and have the discipline to stick to an investing methodology objectively, then you can do your own investing.
