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For financial advisors making the transition to compliance with new DOL fiduciary rules, robo advisory could be a compelling option. However, in performing the fiduciary function, advisors cannot become completely passive and must consider whether investing is an appropriate option, and if the robo offering makes sense for the client.
The debate was rekindled in October when Morgan Lewis, a Philadelphia-based law firm that represents robo advisors, including Betterment, published a white paper arguing that digital advice is indeed fiduciary advice with fewer conflicts of interest than traditional advisory firms. The paper predictably ruffled feathers, not in the least because it disputes arguments made by Fein’s paper often used by industry analysts and regulators arguing that robos require more scrutiny and that the human element in advice is sacrosanct.
http://www.wealthmanagement.com/technology/robo-advice-best-advice
