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Robo-Advisers Must Be Mindful Of Advisers Act, SEC Says

Law360, New York (February 23, 2017, 5:55 PM EST) -- The U.S. Securities and Exchange Commission on Thursday said that “robo-advisers” should be mindful of how the Investment Advisers Act applies to them and their relationship with clients since their services are unique from traditional investment advisers.

The SEC said in a report that firms that deliver investment advice through electronic mechanisms and algorithms, known as robo-advisers, should be considerate of the Advisers Act specifically in regard to client disclosures concerning the services offered by the robo-adviser, the obligation to obtain client information necessary to providing...
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