BlackRock calls for more robo-adviser regulations
Investment management company, BlackRock, has called greater regulations in the field of robo-advisers, according to reports. The firm, which acquired San Francisco-based retail robo-advisory Future Advisor last year, called for, among other things; "consistent oversight of algorithm designs," disclosure of assumptions in automated investments to investors, and the creation of suitability standards to govern all robo-advisers. BlackRock also highlighted the importance of security, including third party platforms.
Regulators have issued guidance and investor alerts on robo-advisors, but BlackRock’s paper suggests a clearer regulatory framework is needed. (Photo: Getty)

BlackRock, the investment management company that oversees more than $4.7 trillion in assets, has issued a new paper outlining what regulatory best practices should look like for robo-advisors.

The world’s largest private sector manager by assets under management, New York City-based BlackRock has a stake in the robo-advisory or algorithm-powered automated investment platforms market, which consultancy KPMG says was managing about $60 billion in assets by the end of last year.