Publication Type
Working Paper
Version
publishedVersion
Publication Date
9-2021
Abstract
Artificial intelligence is changing the operation and business model of many intermediaries in financial markets. Investing through online automated platforms, known as robo-advisers, is becoming very popular worldwide. In fact, some studies estimate that robo-advisers will be managing USD 4.6 trillion by 2022. This chapter analyses the promises and perils of robo-advice, as well as the challenges and regulatory responses adopted in various countries and regions around the world, including the United States, the United Kingdom, the European Union, Australia, Hong Kong, Mainland China, and Singapore. It will conclude by showing that, despite the existence of various legal and challenges that need to be addressed, robo-advisers are expected to play a significant role in the future of the financial sector by reducing the costs of investment and wealth management services, and democratizing access to capital markets.
Keywords
AI, financial services, robo-advisers, investment advice, financial advise, access to finance
Discipline
Science and Technology Law
Research Areas
Innovation, Technology and the Law
Identifier
10.2139/ssrn.3931448
Publisher
SMU Centre for AI & Data Governance Research Paper No. 2021/11
Citation
Aurelio GURREA-MARTINEZ and WAN, Wai Yee.
The promises and perils of robo-advisers: Challenges and regulatory approaches. (2021).
Available at: https://ink.library.smu.edu.sg/sol_research/3459
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
http://doi.org/10.2139/ssrn.3931448