Research On Investor Suitability Obligation In Robo-Advisors

Robo-Advisors refers to the Robo-Advisors platform using artificial intelligence technology,through the online platform,based on the data collected from investors,the use of big data,algorithms and other technical tools to provide investors with portfolio advice a service,with convenient use,preferential prices,wide application and other characteristics,instead of the traditional investment and financial advisors,become the primary choice of small and medium-sized securities investors.Robo-advisors is the application of artificial intelligence technology in the field of investment consultants,the essence is still an investment consultant,should bear the investor suitability obligation,in the process of providing investment advisory services to investors,should fully understand the investor’s situation,fully understand the product,the necessary information and risk to inform investors,alleviate the problem of information asymmetry,and from the relevant information provided by investors to judge the investor’s investment expectations,investment objectives and risk tolerance,to provide investors with a suitable match,Portfolio advice tailored to investor needs.Compared with the obligation of appropriateness in the traditional financial field,the performance of the appropriateness obligation in the field of robo-advisory has a special nature,there is a difference between the degree of performance of the appropriateness obligation in the field of robo-advisory and the traditional field,and there are many incompatibilities between the performance of the appropriateness obligation and the traditional appropriateness obligation,and the relevant legal regulations are still in the blank space of China’s appropriateness obligation system.China’s legal norms on the investor suitability obligation in the operation of robo-advisors are mostly principled provisions,and there is a lack of specialized research,which makes there are problems in the system of appropriateness obligations for investors in the field of robo-advisory in China.First,legislation on investor suitability obligations is fragmented and lacking in specialized provisions.Secondly,the lack of specific performance standards for investor suitability obligation includes the lack of standardization standards for investigating customer information,the lack of standards for understanding algorithms,and the lack of standards for substantive performance of notification and explanation obligations.Third,the civil liability mechanism for breach of the obligation of appropriateness is not perfect,and the provisions on the subject of responsibility and the allocation of responsibility for the breach of the obligation of appropriateness are not clear.Finally,the existing access regulatory system in the field of robo-advisors restricts the development of robo-advisors,and the regulatory authorities under the traditional regulatory system are not effective in supervision,making the supervision of investors’ appropriateness obligations lagging behind.By analyzing the problems existing in the investor suitability obligation system in the field of robo-advisory in China,the following suggestions can be put forward for improving the investor appropriateness obligation system.First,build a system of investor suitability obligation in the field of robo-advisory,and establish a multi-level system of systems and norms with investor protection as the core.Second,clarify the specific performance standards of investor appropriateness obligations,standardize the standards for investigating customer information,stipulate the standards for understanding algorithms,and clarify the standards for substantive performance of the obligation to inform and explain.Third,improve the civil liability mechanism for investor suitability obligation,and clarify the subjects responsible for investor suitability obligation and the criteria for allocation of liability.Fourth,improve the regulatory system for the fulfillment of investor appropriateness obligations,relax access standards,adopt a sandbox supervision model to make up for the shortcomings of prior supervision,and improve the supervision during and after the event through the introduction of scientific and technological supervision,so as to fully protect the legitimate rights and interests of securities investors.