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BlackRock solicits more regulator scrutiny of robo-advisors, eliciting jeers and a cheer

The near $5-trillion asset manager makes its case for why the robo game is best left to the big boys as critics suggest FutureAdvisor's owner is proposing a solution in search of a problem

Tuesday, October 11, 2016 – 3:46 PM by Irwin Stein
Admin:
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Jasen Yang: BlackRock knows that if they can get regulators to put up more requirements ... then the barrier to entry into the robo business will go up.

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Wealthfront's unlikely tapping of Sheila Bair and Tom Curry signals likely push to gain a bank charter, analysts say

The Redwood City robo-advisor's addition of two renowned former chief banking regulators brings legitimacy and guidance that could lead to a margin-fattening bank charter and help solve the robo-advisor's problem of high client acquisition costs.

December 31, 2020 – 4:37 AM

Pete Giza and Damon Deru go for Holy Grail of portfolio rebalancing with software that shuffles stocks, bonds... and asset classes; Believe it?

The RedBlack and TradeWarrior executives see old systems as 'archaic' yet know that the Black Diamonds, Morningstars, Orions and Tamaracs see rebalancing as a loss leader

June 11, 2019 – 9:49 PM



Stephen Winks

Stephen Winks

October 12, 2016 — 2:29 PM
ROBOs are an essential tool for advisors to provide continuous, comprehensive counsel required for fiduciary duty. The difference is the advisor who uses them. ROBOs simply elevate the level of discernment and require a higher level of skill than one dimensional product sales. ROBOs in and of themselves do not require regulation as much as the advisors who use them. If ROBOs are advanced as self contained advisors, then they will find it very difficult to compete with advisors who use ROBOs. SCW

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