With 2017 just around the corner, what trends are likely to drive innovations in wealth management technology, aka wealth tech? The biggest potential regulatory change is the Department of Labor rule that financial planners must act as fiduciaries. The Trump election victory, accompanied by Republican control over both houses of Congress, may make this rule irrelevant. But most in the wealth management industry are nevertheless making preparations in the event the rule (announced this past spring and to be rolled out next spring) is kept. One concern with regard to the fiduciary rule specifically related to wealth tech is how fiduciary responsibility would work with robo-advisories. Can an automated investment platform determine conflicts of interest between the planner and client? What technological tools will be needed to give robo-advisory platforms this capacity? Read more: finovate.com
