From ZD Net:
Sydney-based financial services licensee Lime FS has agreed to voluntarily shut down two of its robo-advice tools after concerns were raised by Australian Securities and Investments Commission (ASIC).....MORE
The robo-advice tools owned by Lime FS -- Plenty Wealth and Lime Wealth -- are authorised to provide automated personal financial advice to consumers about life insurance, budgeting, tax, investments, and superannuation. Both tools operate using algorithms and technology, without direct involvement of a human adviser.
However, ASIC said after reviewing a sample advice file from Plenty Wealth and Lime Wealth, the quality of advice generated by the automated online tools were "inadequate". In some instances, the advice generated by the tools conflicted with client goals or other recommendations also generated by the tools.
"Digital advice tools offer a convenient and low-cost alternative to consumers who may otherwise not seek personal financial advice. However, the advice provided through these tools must meet the same legal obligations required of human advisers -- the advice must be appropriate to the client and comply with the best interests duty," ASIC commissioner Danielle Press warned....
