Abstract

Since their emergence, robo-advisers ¹ have been one of the fastest growing segments of financial technology (“FinTech”). ² Though predictions of purely digital investment advisory services’ quick and sustained growth may be overstated, ³ robo-advisory platforms continue to thrive with industry experts predicting more consumers seeking out their advice in years to come. ⁴ Whether robo-advisers will fold, continue to grow, or return to their original promise of premium investment services provided without any visible human adviser and human investor interaction is uncertain. Nevertheless, the robo-advice revolution has caused many to ponder whether robo-advisers’ promises can be fulfilled. ⁵ Chief among those promises is the purported ability to live up to a fiduciary standard, a claim that industry observers similarly question. ⁶ Still young, robo-advisers have already been the subject of lawsuits for allegedly not meeting their fiduciary responsibilities and providing conflicted advice, perhaps validating the many questions raised about their ability to revolutionize the markets. ⁷