The Taiwanese financial regulator has given the okay for companies to use fully-automated advice platforms, according to the Taipei Times.
Previously the Financial Supervisory Commission only allowed platforms to provide recommendations based on risk profiles and goals. The clients were then required to place their own orders or approve each trade.
Now securities investment trust and consulting (SITC) firms can trade on behalf of clients, opening the doors for fully-automated robo-advice platforms.
It’s just one of the latest moves of governments around the world approving the emerging sector. In New Zealand a new bill that was recently introduced would allow financial advice to be given by robots. At the moment digital wealth management firms are not allowed to operate in the country, as advice can only be given by “natural” persons.
In Taiwan, robo-advice startups would still need to get approval from the FSC. The regulator has also created guidelines for firms, including stricter “know your customer” checks, investment product descriptions and questionnaires.
In addition, firms would have to establish committees to oversee improvements to the algorithms, as well as conduct routine checks on return performance, Chou said.