Robo-Advice

Refreshed March 2025 | CPD time: 45 Minutes

The term ‘robo-advice’ generally refers to the development of web-based systems which provide investment advice or portfolio management to clients without the (direct) involvement of a human adviser. Such a system has a number of attractions, particularly the potential to provide consistent and robust investment services to clients at a significantly lower cost than is otherwise possible. The concept’s detractors, however, state that there are inherent complexities in providing investment advice that fully reflects all of a client’s unique personal needs and circumstances. This module provides an understanding of robo-advice, the definition of advice, and the implications of giving it, the impact of the so-called ‘advice gap’, and the evolving regulatory framework.