May 15, 2018
The designers of robo-advisor technology and the regulators of robo-advisor technology have a ways to go before robo-advisors reach their potential and deliver high-quality advice to a mass-consumer market across a broad range of financial services. Nevertheless, it is not too early to begin thinking about what comes next.
For that purpose, it is useful to assume that regulators will develop the capacity to confirm that robo-advisors do what their creators and operators say, based on access to data of adequate quality, and that regulators will gain the authority to remove from the market robo-advisors who cannot or will not prove their capabilities to regulators.
That means that, in the near future, consumers will have access to well-designed robo-advisors that honestly and competently recommend suitable financial products for consumers across the entire spectrum of financial products, employing appropriate choice architecture and reliable information technology infrastructure. – Regulating Robo-Advice Across the Financial Services Industry, The University of Pennsylvania Law School