Abstract
The current Chinese intelligent investment advisor development is still in its infancy, the new formats, business models it brings and the current regulations cannot adapt to each other, which leads to the handicap of market development. In order to solve the legal risks faced by Chinese intelligent investment advisor development, the article thinks that few measures should be taken. Existing barriers in legal system shall be removed and a new solution shall be found based on the balance between “financial security” and “financial efficiency” to facilitate the pace of financial innovation like Robo-advisor.
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Notes
- 1.
The legal basis of this definition is Article 2 of Interim Provisions on Securities Investment Advisory Business.
- 2.
This view if based on the provisions of Article 2 of Provisions on Strengthening the Administration of Securities and Investments in the Administration of Securities Investment Consulting effective since January 1, 2013.
- 3.
For example, the investment consulting business is applied to Interim Measures for Administration of Securities and Futures Investment Consulting, Interim Provisions on Securities Investment Advisors, and Interim Provisions on the Issuance of Securities Research Reports; while the assets management business is involved in different business regulations of banking, securities, and insurance industry.
- 4.
For example, an intelligent investment advisory organization defines itself as an intermediary platform in the service contract, but its taking indirect interests did practically involve the securities consulting business. Since the organization did not hold correspondent licenses nor follow the registration system, it may be suspected of being involved in an illegal operation.
- 5.
FCA described RegTech as “facilitating the regulation requirements-meeting through technology innovation”. RegTech companies, represented by AlgoDynamix (UK), Percenttile (UK), Alyne (Germany), REGtify (Cyprus) and Vizor (Ireland), could provide technology services for regulation of Robo-advisor.
References
Research Report on Chinese Intelligent Investment Advisor Market in 2017. http://www.iimedia.cn/54723.html
China’s Mainstream Intelligent Investment Platform Case. https://www.touzi.com/news/021160-106845.html. Accessed 19 Oct 2017
An Analysis of the Status Quo of China’s Intelligent Investment Industry. http://www.weiyangx.com/206106.html
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Li, Q.: Path of internet securities intellectualization: jural relation, risks and regulatory of intelligence investment advisor. Shanghai Finan. 11, 53 (2016)
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Liu, Cy. (2018). Legal Risks and the Countermeasures of Developing Intelligent Investment Advisor in China. In: Karwowski, W., Ahram, T. (eds) Intelligent Human Systems Integration. IHSI 2018. Advances in Intelligent Systems and Computing, vol 722. Springer, Cham. https://doi.org/10.1007/978-3-319-73888-8_13
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DOI: https://doi.org/10.1007/978-3-319-73888-8_13
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