Is it really a blessing that algorithms manage your money for you? Risk Perception and Regulatory Considerations after the Rise of Robo-Advisors

Abstract

Along with the rapid development of financial technology, intelligent investment advisory system as a new mode of financial services has changed the traditional investment consulting landscape. However, intelligent investment advisory system is widely used, which brings many risks such as algorithm error, data security and market fluctuation. All these risks affect investors' interests and threaten financial market stability as well. The aim of this paper is to discuss the risk problems existing in intelligent investment advisory system, and put forward the design and application scheme of information technology. Through constructing comprehensive regulatory framework, this paper details the design concept, system architecture and main function modules so as to effectively supervise intelligent investment advisory system by means of IT. With the continuous improvement of technology and regulatory policies, Smart Investment Advisory Regulatory System will play an important role in financial regulation.