Robo-advice News Wrap: Counterrevolution, unusual New Zealand, cynical Aussie accounts

By David Tuckwell on Thursday 22 June 2017

Savings and Investment

Robo reverses fintech revolution; New Zealand may lighten on robo; Aussie accountants too cynical

Robo-advice news from around the world, summarised daily.

Robo-advice is entirely undisruptive and will reinforce powerful wealth managers not undermine them, a new report from Silicon Valley think tank the Christensen Institute has found. What robo-advice has changed is that investor software that was sold to advisers is now, in effect, sold to investors instead. It is not a disruptive business model. 

New Zealand's unusual relationship with robo-advice has taken another turn, with regulators suggesting they may bypass current laws and grant exemptions to robo-advisers. Robo is currently illegal in New Zealand as laws prohibit machines and algorithms advising investors. 

Rob-advice may be the cheaper option for retired accountants managing their own money, but will they bite? One consultancy firm has said retiring Aussie accountants won’t go for robo because they either work with financial advisers already or think financial advice as a whole is crock. 

This article first appeared on www.roboadvicenews.com.

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