A survey of financial planners has found a majority would support ASIC placing limitations on the provision of automated asset allocation, or ‘robo-advice’ tools.
The Midwinter Robo-Advice Survey – which polled over 288 advice professionals – found 52 per cent of respondents agreed that ASIC should intervene to limit the scope of robo-advice in some form.
However, the advisers were evenly split on how such regulation should be implemented.
The survey found 20 per cent of advisers believed robo-advice should be limited to product advice only.
A further 16 per cent thought such advice should be limited to RG200 scope while another 16 per cent believed it should be limited to intra-fund advice.
On the other hand, almost a third of advisers did not support ASIC limitation, with 31 per cent indicating ASIC should “let the market decide the scope”.
Another 17 per cent of respondents indicated they had no opinion either way, according to the survey.
Overall, the survey found advisers revealed mixed feelings towards the influx of mobile advice into the financial services sector.
Of the advisers surveyed, 43 per cent indicated they were "aware but not worried" about robo-advice, while 12 per cent described themselves as "aware and excited".
On the other hand, 23 per cent of advisers expressed concern about the rise of advice software and 17 per cent indicated they had been unaware of its existence.
Respondents for the survey were drawn from over 65 licensees and represented a range of business models, with 44 per cent from boutique/IFA practices, according to a statement from Midwinter.
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