Financial Robots as Instruments of Fiduciary Loyalty
(2018) 40 Sydney Law Review 63
31 Pages Posted: 6 Nov 2019 Last revised: 26 Mar 2020
Date Written: 2018
Retail financial consumers increasingly interact with financial services providers via a financial robot that is driven by an algorithm or other mathematical model (‘robo financial advice’). In this sector, the focus of industry and legal participants is on statutory regulation under the Corporations Act 2001 (Cth) and associated class orders and guidance issued by the Australian Securities and Investment Commission. We argue that despite compliance with this regime, significant legal risk remains. Equity continues to operate in a domain where fiduciary obligations, and attendant poorly managed fiduciary conflicts, arise systemically. This article considers the application of the fiduciary norm to robo financial advice. In doing so, it explores the interaction of equitable principle and statute, and pursues a deeper understanding of the application of equitable fiduciary principle to robo financial advice.
Keywords: Fiduciary Obligations, Robo Advice, Remedies, Robo Financial Advice
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