Reserch On Supervision Of Robo-advisor

It has only been seven years since the concept of Robo-advisor was put forward,and its development in China has just entered into the third year.Compared with other application fields of Fintech,Robo-advisor has rapidly become the “Blue Ocean” of asset management with low-cost,high-efficiency characteristics of grassroots finance,which has been flooded with capital and is bound to bring about a wave of change in global wealth management field in the future.However,due to low industry entry threshold,deficiency of laws and regulations and imperfection of supervision system,the whole industry of Robo-advisor is in a state of barbarism and the protection of ordinary investors' rights and interests is in a legal vacuum for long.In view of this,from the perspectives of operator regulation and investor protection,category-based supervision in advance,personalized guidance in process and promptly relief afterwards,this paper,combining with the basic concept of economic law and the experience of Robo-advisors' supervision abroad,tries to put forward some suggestion on how to improve the supervision status of Robo-advisor in China in case of the occurrence of large-scale risk events affecting the overall security of the financial system.Besides the introduction and conclusion,this paper is comprised of four chapters.Chapter One firstly introduces the basic concept of Robo-advisor,including the definition,operation mode and development stage of Robo-advisor,in order to help readers to establish a basic understanding of Robo-advisor.Secondly,by comparing with traditional advisor,summarizing the characteristics,advantages and disadvantages of Robo-advisor,which leads to the necessity of supervision of Robo-advisor.Finally,analyzing the legal relationship of each operation step of Robo-advisor and the possible legal risks correspondingly.On the basis of legal risks analysis of Robo-advisor in Chapter One,Chapter Two discusses the supervision path of Robo-advisor in the perspective of macro-theory.This chapter firstly identifies the financial security,financial efficiency and investor protection as the three objectives of supervision of Robo-advisor.Secondly,putting forward the safety,fairness,transparency and moderation as the four major regulatory principles which should be followed.Finally,Elaborating three regulatory path as follows: setting up public-private laws and regulations to co-regulate the development of Robo-advisor,imposing higher standards of duty and responsibility on the operator of Robo-advisor and encouraging the establishment of industry self-discipline organization as a step ahead,which lead to the contents of Chapter Three.Chapter Three sets up the regulatory framework for Robo-advisor by summarizing the common characteristics of Robo-advisors' supervision abroad,including professional regulatory systems,specially established regulatory agencies,innovative regulatory mechanisms,higher industry entry threshold,more comprehensive investors education and protection and higher levels of supervision.Based upon the experience of Robo-advisors' supervision abroad,Chapter Four focus on the improvement and suggestion to Robo-advisors' supervision in China.This chapter firstly introduces the development and regulatory status of Robo-advisor in China,pointing out the defects therein,and proposes suggestions for improving the supervision of Robo-advisor in China from five aspects.Firstly,encouraging innovation and preventing risks simultaneously,with particular emphasis on the obligation of operators and protection of investors' rights and interests.Secondly,implementing progressive and collaborative supervision based upon the existing financial regulatory framework and laws and regulations,including establishing financial innovation pilot bases and regulatory inter-ministerial joint meeting of Robo-advisor.Thirdly,exerting the synergistic role of industry self-discipline organization.Fourthly,establishing and improving the mechanism of dispute settlement and loss compensation and fully exerting the authority and initiative of the judiciary in order to provide two-way protection for operators and investors of Robo-advisor.Fifthly,enhancing regulatory capacity by use of Regtech,while emphasizing the improvement of the quality and ability of regulatory staffs correspondingly.