Research On Legal Regulation Of Robo-advisors

Since the 21 st century,artificial intelligence technology has developed rapidly.The big data analysis can accurately describe the precise appearance of users,which has brought about new changes in the development of science and technology.The financial sector has always had a large amount of data resources.For financial companies,the use of artificial intelligence technology can greatly improve the operational efficiency of financial companies,and there is great room for fintech development.For investors,financial institutions can use artificial intelligence algorithm technology to create asset management investment solutions for each of them,so as to maximize the return on investment.China has also attached great importance to the development of artificial intelligence,actively planned it,and determined the concept of "smart finance" at the national strategic level.It is expected that artificial intelligence technology will be better applied in the financial field.Intelligent investment advisor is one of the representative products.For a long time,China’s financial supervision has been dominated by institutional supervision.Due to the innovation of financial services,the supervision of a financial product often involves multiple fields.Drawing on the experience of Europe and the United States,China’s regulatory model can be transformed into behavioral supervision and functional supervision.In addition,for financial innovation products,a “regulatory sandbox” model can also be used to conduct risk assessments to reduce market risks that may be caused by entering the market.Investor protection is also the focus of financial supervision.Regulatory authorities also need to pay attention to raising investor risk awareness and strengthening investor education.The investment consultant originated from the "Investment Company Law" and "Investment Consultant Law" introduced in the United States in 1940.The investment consultant in the United States is actually a fund manager and can accept the full power of entrustment.The investment consultant in China conducts investment consulting business.It does not have asset management attributes,so this article first focuses on clarifying the differences between the US and China’s investment advisory regulations,drawing on the US’s mature financial market access rules,creating a discretionary asset management business under an investment advisor,and improving the investment advisor’s business structure..Intelligent Investment Advisor uses artificial intelligence technology on the basis of traditional investment consultants,which improves service efficiency,reduces agency costs,and can provide more objective investment advice.However,the technology model hides the real obligation bearer,which must penetrate the black box of technology and clarify the fiduciary and compliance obligations of the business entity.The main content of this article includes four parts:The first part analyzes the expressions of robo-advisors used in different countries,clarifies the definition of robo-advisors,and summarizes the current development status of robo-advisors in various countries.The second part analyzes the problems existing in the development of roboadvisors at this stage.We are encouraging the rule of law of artificial intelligence,but no clear regulatory documents have been issued for the development of artificial intelligence,and the development of robo-advisors is not yet complete.On the one hand,due to the instability of intelligent technology,the intelligent technology reflected in the investment consulting business is not yet perfect;in addition,there is also controversy over the neutrality of the algorithms designed in artificial intelligence technology;the business specifications involved in the development of intelligent investment consulting are insufficient.The third part mainly explains the current status of China’s supervision and the hidden dangers of the existing legal regulatory system in the supervision of intelligent investment advisory.First of all,in terms of the position of intelligent investment advisory,due to the limitation of the development of artificial intelligence technology,intelligent investment advisory is still an object of legal relations;combined with China’s current macro regulatory model,there may be cross-registration of rights and regulatory gaps;There is a legal framework for the specification of intelligent investment advisory.At present,the legal regulations of intelligent investment advisory investment consultants limit investment consultants to the field of investment consulting business and cannot engage in full commission work.The regulatory regulatory framework defines the investment consultants too narrowly.Business development;and insufficient protection of investors in regulatory rules.The fourth part,referring to the supervision experience outside the territory,puts forward the supervision suggestions for the intelligent investment advisory business.The author believes that from a macro perspective,we can promote China’s transition from the current institutional supervision mode to functional supervision.For the algorithm supervision,we can learn from the British functional supervision model.For the financial technology innovation products,use the regulatory sandbox mode,that is,financial innovation products are officially Before entering the market,conduct a risk test to clarify the regulatory obligations of the regulatory authorities.Drawing on the experience of European and American smart investment advisors,including investment consulting and asset management,to promote the vitality of the financial market,the business scope of China’s investment consultants should include asset management.The restrictions on the prohibition of discretionary entrustment by higher-level laws such as the Securities Law need to be cleared up;when conducting asset management business,you can learn from Japan ’s investment consulting and asset management second-tier license access model;because intelligent investment advisory uses algorithm technology To start the investment advisory business.After the real obligor is hidden in the black box of the algorithm,the existing legal system does not clearly stipulate that the information obligation of the real obligor should penetrate artificial intelligence technology,implement the compliance obligations of the algorithm developer,and intelligent Letter from the investment advisory operator fiduciary duty,strengthen information disclosure and improve risk regulatory mechanisms;in addition,from the perspective of investor protection,setting a reasonable investor classification,clear barriers to entry of investors,strengthen investor education to support the interests of investors.