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Singapore's Robo-Advisors Get Marching Orders

Tom Burroughes

10 October 2018

Singapore’s financial regulator proposes to free robo-advisors from some of the red tape applied to more traditional businesses, but also warns that cyber-security threats pose distinct risks to new channels.

The , the wealth management firm. 

Advisors will be freed from having to collect full details of clients’ financial positions so long as firms mitigate the risk of offering unsuitable investment advice. Advisors can pass clients’ trade orders to brokerages without having an additional capital markets licence, the MAS continued.

The watchdog warned, however, that digital advisors carry specific risks, such as faulty programmes and the threat of being hacked.

“To mitigate such risks, the guidelines set out MAS’ expectations for digital advisors to establish robust frameworks to govern and supervise their algorithms, as well as to manage technology and cyber risks,” it said.