is already worried about roboadvisors who go it alone. And now he's worried about human advisors who team up with those robos, too.
The office of Galvin, Massachusetts' Secretary of the Commonwealth, issued
a four-page policy statement with guidance for RIAs registered in Massachusetts who use roboadvisors for their clients. The upshot is that Galvin wants RIAs in his state to disclose their roboadvisor alliances while clarifying which duties the robo handles (and which the RIA handles itself). And he also wants robos' RIA allies to watch their fees.
Deidre Fernandes of the Boston Globe reported
on the new guidance from Galvin's office. The paper notes that there are 700 RIAs registered in Massachusetts.
The move comes three months after Galvin's office issued
an eight-page policy statement wondering if "fully automated robo-advisers, as currently structured, may be inherently unable to carry out the fiduciary obligations of a state-registered investment adviser."
Neil Anderson, Managing Editor
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