Yvonne Dunn: Robo-advice debate risks hampering innovation

Advice/guidance fixation must end

clock • 4 min read

Innovation in robo-advice solutions in the UK could be hampered if there is a never-ending debate on whether they involve the provision of regulated financial advice or merely guide consumers, writes Yvonne Dunn.

Robo-advice tools have the potential to help address the UK's ‘advice gap', which was highlighted in the Financial Advice Market Review (FAMR) published earlier this year. The term refers to the number of consumers who need help selecting retail investment products to put their money into but who cannot afford to pay, or elect not to pay, for regulated financial advice. Figures in 2015 showed there was appetite in the UK market for greater regulatory clarity on the use of robo-advice solutions. From autumn 2014 up until 19 August 2015, the Financial Conduct Authority (FCA) received 39 re...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Technology

Advice firms only spending 35% of time on client meetings

Advice firms only spending 35% of time on client meetings

Spending more time on business, compliance and staff development

Isabel Baxter
clock 18 November 2024 • 2 min read
PFS Conference 2024: AI should augment not replace human element in advice

PFS Conference 2024: AI should augment not replace human element in advice

Firms that adopt technology to save time will improve client experience

Jenna Brown
clock 14 November 2024 • 2 min read
Advisers call for enhanced compliance processes to use AI

Advisers call for enhanced compliance processes to use AI

AI ‘firmly embedded’ into advice journey but ‘more work needs to be done’

Isabel Baxter
clock 12 November 2024 • 2 min read