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Tag: Hedgeable

Robo Regulatory Missteps and B2B Industry Growth

Posted on May 28, 2019

“The SEC announced in December that it reached a settlement agreement with two robo advice providers.”

As robo advice grows rapidly and reaches widespread adoption, they are also catching the attention of regulators. The first SEC action against providers occurred at the end of 2018, as the SEC announced in December that it reached a settlement agreement with two robo advice providers. The SEC order stated that Wealthfront claimed to be monitoring outside accounts for wash sales related to their tax-loss harvesting product when, in fact, they were not. The SEC announcement reported that 31% of accounts enrolled in tax-loss harvesting experienced a wash sale in the more than three years that Wealthfront made this claim. Other findings included re-tweeting prohibited client testimonials and paying bloggers for client referrals without the proper disclosures and documentation.