Your Industry  

Guide to Robo-advice

    Guide to Robo-advice


    Nonetheless, just like web-based retailers, they will change the world.

    The advice process with robo-advice is familiar.

    First, an adviser obtains information and financial data about a person.

    Then they use that as a basis for recommending, and implementing, an appropriate investment strategy.

    A robo-adviser does exactly the same thing – but without any human involvement.

    The robo collects data and information; in most cases, the prospective investor enters it into the system themselves.

    At the robo’s heart is an algorithm that scores the information and decides what investments should be chosen.

    The robo then presents the investment strategy, which is usually passively focused around index funds or ETFs, and allows easy implementation.

    This guide will explain what robo-advice is, potential rewards and pitfalls of a robo recommendation, how it could threaten or compliment traditional financial advice models and how fintech in this area will transform the market in the next few years.

    Supporting material produced by: Paul Resnik, director of investment suitability experts FinaMetrica; Nick Eatock, founder of Intelliflo; Ben Goss, co-founder and chief executive of Distribution Technology; and Frazer Wilson, senior consultant at Thomas Miller Investment.

    In this guide


    Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

    1. What does Mr Wilson say is the big difference between traditional financial advice companies and robo-advisers?

    2. What comparison does Mr Resnik give for how robo-advice will change the advice industry?

    3. Who is robo-advice suitable for, according to Mr Eatock?

    4. What part of the market has fully automated advice enjoyed considerable success in, according to Mr Goss?

    5. Which company is NOT listed as a robo-advice player established in the US?

    6. What does Fos wants robos to give, according to Mr Resnik?

    Nearly There…

    You have successfully answered all the questions correctly, well done!

    I completed this CPD in

    To bank your CPD please complete the form below.

    Were the stated learning objectives met?

    Why weren't they met?

    What did you learn from undertaking this CPD exercise?

    Why did you undertake this piece of learning?

    Any comments about this article or FTAdviser's CPD in general?


    Congratulations, you have successfully completed and banked this piece of CPD

    Already Banked!

    You have already banked for this article.

    To bank your CPD you must sign in or


    One or more questions have been incorrectly answered,
 please review your answers and try again.

    Please complete all the above text fields to bank your CPD.

    More Your Industry CPDSee my completed CPDSee all CPD