Research On Legal Problems Of Robo-Advisor

Robo-Advisor as a new type,the definition in our country of its legal and business boundary are still unclear.There are also many problems in its developing process,and various pseudo-Robo-Advisors are popular in the markets.And the existing legal system cannot be fully applied to it,owing to a certain difference between the Robo-Advisor and the securities investment consulting business in the traditional securities policy theory.Thus,the operating of Robo-Advisor business faces legal obstacles,including the contradiction between the discretionary account service and the current regulations,the shortage of licenses and the difficulty in identifying the qualifications for employment,and the ambiguity of business boundaries on the supervision of separate industries,etc.Robo-Advisor has only entered the Chinese market for 4 years,there is still no clear standard for whether the algorithm is effective and whether the information disclosure is sufficient.It is impossible to achieve effective supervision.At present,various cases of illegal use of personal information and violation over personal privacy have frequently occurred,and the personal information security of Robo-Advisor is also facing severe challenges.China's regulatory authorities have also paid attention to the issue of supervision over Robo-Advisor.In April 2018,for the first time,the "New Regulations on Asset Management" incorporated Robo-Advisor into the regulatory framework,but the provisions of this clause for Robo-Advisor are still vague and cannot fulfil the urgent need of the market.From this point and guided by the investor protection theory,this article adheres to the concept of penetrating supervision,draws on the advanced supervision experience of the developed countries such as the United States and the United Kingdom,and puts out improved suggestions with consideration of China's specific national conditions and problems encountered,including breaking the legal barriers to Robo-Advisor,strengthening the review and recording of Robo-Advisor algorithms,improving the corresponding legal system and regulatory system,and perfecting regulatory measures with technology,:in order to promote the development of Robo-Advisor industry,and better protect the legitimate interests of investors.