Opinions by Daniel Glasner, founder & CEO of Action Finance.


What is really needed in the market is a “Robo Advisor” that can be sued for providing a “shoddy” advice to the investor.

I have red Ms  Claer Barrett article which was published on the on March 15: Robo advice can never exterminate the UK’s financial frailty. I like Ms Barrett article and agree on her conclusion.

Most retail and qualified investors should benefit from new robotised internet technology. But, it is still a human brain that should provide the advice.

What is really needed in the market is a “Robo Advisor” that can be sued for providing a “shoddy” advice to the investor. It is as simple as that!

In order to diminish the potential of a law suit, the Robo-Advisor needs to pull together the following ingredients:

  • the investor pays an advisory fee to the Advisor even if he holds cash in his account
  • the investor has not a trader/gambler mentality
  • the investments are diversified
  • the time horizon of the investment should be reasonable long
  • the selected investment strategy (asset allocation) should set once for all and periodically revised, but should remain constant
  • the cost of transaction and custody is very low, so the performance is improved
  • a limited spectrum of ETF (passive or active) and mutual funds are provided
  • the Robo-Advisor has no conflict of interest what so ever and strictly complies with a professional code of conduct
  • the internet/mobile connection is extremely secure in order to avoid any hacking/delays in transmission
  • the Robo-Advisor (team) is experienced

My true concern is now about the high level of artificial intelligence that challenges the human Advisor: Indeed, Google’s AlphaGo (Deep Mind) has  beaten this past week Go* Master Lee Se-dol 4-1 in best of-of-five competition. *Chinese board game.   This is a new benchmark after that Deep Blue chess computer won against Garry Kasparov  in 1996.

The investment/financial/tax/economics and political world being so complex, it may take a while to create a perfect Robo-Advisor who will be always right.

So the forthcoming and “trusted”  human Advisor using digital /internet technology to communicate efficiently with investors –who may sue him- has chance to build a good mutually fruitful advisory business for some  years ahead of us.