Research On The Regulatory Issues Of Smart Investment Advisor

With the development of Fintech,robo-advisers,which make automated investment by algorithms,have attracted a new generation of retail investors.Since it originated in the United States,robo-advisers,with characteristics of low cost,high efficiency and automation,have rapidly swept Wall Street and have gradually entered the financial markets of various countries.Undeniably,in the development of financial industry,Fintech and artificial intelligence play an important role.However,based on the traditional financial business model,our financial supervision system is extremely short of technical risk monitoring measures.In order to get rid of the regulatory dilemma of robo-advisers,China’s current financial supervision system urgently needs to be upgraded.Starting from the legal definition of robo-advisers,the paper compares the matching degree between the development and application of technology and grasps the demanding of policies,regulations and documents.It is well-known that modern science and technology will become the main driver of industrial transformation and upgrading.So in the current transition period,the relationship of new business models and the traditional regulatory is intense,even in friction.It is the key to grasping the contradictions and carrying out targeted reforms in the technology development and transformation and upgrading of the financial regulatory system.Therefore,begin with the concept and characteristics of robo-advisers,the paper contrasts the traditional manual investment advisers and robo-advisers,and the particularity of their supervision,this paper analyzes the difficulties faced by regulatory authority and draws lessons from foreign countries to provide new ideas for the improvement of the financial supervision system of robo-advisers.In the future,the financial system and the financial regulatory system will become more modernization and technological.The main body of the article consists of four parts:Chapter 1: Robo-advisers and the particularity of their supervision.This part is divided into two subsections.The first section summarizes the legal definition of robo-advisers,the Fintech innovation product,both at home and abroad.The second section is comparing the traditional manual investment advisers and robo-advisers to clarifies the special regulatory demands of robo-advisers,and paves the way for the following analysis of the institutional difficulties faced by the supervision process of robo-advisers under the current financial supervision system.Chapter 2: The regulatory dilemma of robo-advisers.Robo-advisers provide investment advisory services and security trading services by computer algorithms,cloud computing,big data,machine learning and so on.What worries us is that the running process under the current regulatory law may produce friction or regulatory gaps and increase the risk exposure.Based on the above analysis of the particularity of robo-advisers,this paper discusses the problems encountered in the current specific robo-advisers supervision,such as the lack of algorithm risk specification,the inadequate protection of investors’ rights and interests,and the robo-advisers business beyond the scope of fiduciary duty adjustment.Chapter 3: Learn from foreign countries to solve the regulatory dilemma of robo-advisers.Although,robo-advisers make use of computer,big data,cloud computing,machine learning and so on,in essence,it is still a financial service tool.The innovation of mode cannot change its actual function and effect.According to its technical characteristics,robo-advisers financial supervision can absorb and draw lessons from the financial supervision system innovation of foreign countries and regions,such as the introduction of penetrating supervision concept,the application of supervision technology,and the construction of supervision sandbox,from which we can summarize and improve the beneficial experience of robo-advisers financial supervision system design,so as to realize the promotion of investor rights protection,prevention and control system risk,effective allocation of resources and other financial regulatory objectives.Chapter 4: The improvement of financial supervision system of robo-advisers.Firstly,robo-advisers should have a dual financial regulatory structure;Secondly,make clear the principle of algorithmic governance with "openness" as the core;Thirdly,broaden the subject and content of fiduciary duty;Finally,establish and improve the rules and guidelines of the supervision sandbox pilot to ensure the smooth development and timely spread of the pilot work.