Hephaestus and Talos: The Legal Status and Obligation Theory of Robot Advisors

22 Pages Posted: 21 Jul 2020

See all articles by Simin Gao

Simin Gao

Tsinghua University - School of Law

Date Written: March 2020

Abstract

In the context of intelligent finance, the traditional legal framework targeting financial professionals is impractical and ineffective for robo-advisors do not possess independent legal personality, thereby leading to problems of empty enforcement, confusion concerning the identity of obligors and the failure of the existing system of duties. To deal with this dilemma, lawmakers need to restructure the obligor’s identification mechanism and the system of duties. The substance of duties for the mode of robo-advisor needs to penetrate the complex veil and keep up with the algorithmic level to reflect their essential characteristics. The principles for the new regulatory paradigm are to avoid the evasion of accountabilities and responsibilities caused by dodging and relaxing the duties with the excuse of algorithm black box, as well as to avoid overburdening obligors by fully embracing the new development of artificial intelligence.

Suggested Citation

Gao, Simin, Hephaestus and Talos: The Legal Status and Obligation Theory of Robot Advisors (March 2020). Singapore Journal of Legal Studies, Mar. 2020, pp 143-164, Available at SSRN: https://ssrn.com/abstract=3649797

Simin Gao (Contact Author)

Tsinghua University - School of Law ( email )

Law School (Mingli Building)
Room106
Beijing, Beijing 100084
China

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