{"id":738,"date":"2016-03-17T14:27:29","date_gmt":"2016-03-17T14:27:29","guid":{"rendered":"http:\/\/www.actionfinance.ch\/?p=738"},"modified":"2016-03-18T18:52:41","modified_gmt":"2016-03-18T18:52:41","slug":"what-is-really-needed-in-the-market-is-a-robo-advisor-that-can-be-sued-for-providing-a-shoddy-advice-to-the-investor","status":"publish","type":"post","link":"https:\/\/www.actionfinance.ch\/en\/what-is-really-needed-in-the-market-is-a-robo-advisor-that-can-be-sued-for-providing-a-shoddy-advice-to-the-investor\/","title":{"rendered":"What is really needed in the market is a \u201cRobo Advisor\u201d that can be sued for providing a \u201cshoddy\u201d advice to the investor."},"content":{"rendered":"<p>I have red Ms \u00a0Claer Barrett article which was published on the FT.com on March 15: <a href=\"http:\/\/www.ft.com\/cms\/s\/0\/dae6770e-e9fb-11e5-888e-2eadd5fbc4a4.html#axzz42swEXZIb\" target=\"_blank\">Robo advice can never exterminate the UK&#8217;s financial frailty<\/a>. I like Ms Barrett\u00a0article and agree on her conclusion.<\/p>\n<p>Most retail and qualified investors should benefit from new robotised internet technology. But, it is still a human brain that should provide the advice.<\/p>\n<p><strong>What is really needed in the market is a \u201cRobo Advisor\u201d that can be sued for providing a \u201cshoddy\u201d advice to the investor.\u00a0<\/strong>It is as simple as that!<\/p>\n<p>In order to diminish the potential of a law suit, the Robo-Advisor needs to pull together the following ingredients:<\/p>\n<ul>\n<li>the investor pays an advisory fee to the Advisor even if he holds cash in his account<\/li>\n<li>the investor has not a trader\/gambler mentality<\/li>\n<li>the investments are diversified<\/li>\n<li>the time horizon of the investment should be reasonable long<\/li>\n<li>the selected investment strategy (asset allocation) should set once for all and periodically revised, but should remain constant<\/li>\n<li>the cost of transaction and custody is very low, so the performance is improved<\/li>\n<li>a limited spectrum of ETF (passive or active) and mutual funds are provided<\/li>\n<li>the Robo-Advisor has no conflict of interest what so ever and strictly complies with a professional code of conduct<\/li>\n<li>the internet\/mobile connection is extremely secure in order to avoid any hacking\/delays in transmission<\/li>\n<li>the Robo-Advisor (team) is experienced<\/li>\n<\/ul>\n<p>My true concern is now about the high level of artificial intelligence that challenges the human Advisor:\u00a0Indeed, Google\u2019s AlphaGo (Deep Mind) has \u00a0beaten this past week Go* Master Lee Se-dol 4-1 in best of-of-five competition. *Chinese board game. \u00a0\u00a0This is a new benchmark after that Deep Blue chess computer won against Garry Kasparov \u00a0in 1996.<\/p>\n<p>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.<\/p>\n<p>So the forthcoming and &#8220;trusted&#8221; \u00a0human Advisor using digital \/internet technology to communicate efficiently with investors &#8211;<strong>who may sue him-<\/strong> has chance to build a good mutually fruitful advisory\u00a0business for some\u00a0\u00a0years ahead of us.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>I have red Ms \u00a0Claer Barrett article which was published on the FT.com on March 15: Robo advice can never exterminate the UK&#8217;s financial frailty. I like Ms Barrett\u00a0article 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 [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[3],"tags":[],"class_list":["post-738","post","type-post","status-publish","format-standard","hentry","category-uncategorized-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.actionfinance.ch\/en\/wp-json\/wp\/v2\/posts\/738","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.actionfinance.ch\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.actionfinance.ch\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.actionfinance.ch\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.actionfinance.ch\/en\/wp-json\/wp\/v2\/comments?post=738"}],"version-history":[{"count":4,"href":"https:\/\/www.actionfinance.ch\/en\/wp-json\/wp\/v2\/posts\/738\/revisions"}],"predecessor-version":[{"id":746,"href":"https:\/\/www.actionfinance.ch\/en\/wp-json\/wp\/v2\/posts\/738\/revisions\/746"}],"wp:attachment":[{"href":"https:\/\/www.actionfinance.ch\/en\/wp-json\/wp\/v2\/media?parent=738"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.actionfinance.ch\/en\/wp-json\/wp\/v2\/categories?post=738"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.actionfinance.ch\/en\/wp-json\/wp\/v2\/tags?post=738"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}