Baidu Approves $5 Billion Share Buyback and Plans First-Ever Dividend in 2026 
TrumpRx Website Launches to Offer Discounted Prescription Drugs for Cash-Paying Americans 
TSMC Eyes 3nm Chip Production in Japan with $17 Billion Kumamoto Investment 
Prudential Financial Reports Higher Q4 Profit on Strong Underwriting and Investment Gains 
AMD Shares Slide Despite Earnings Beat as Cautious Revenue Outlook Weighs on Stock 
Nintendo Shares Slide After Earnings Miss Raises Switch 2 Margin Concerns 
Amazon Stock Rebounds After Earnings as $200B Capex Plan Sparks AI Spending Debate 
SpaceX Prioritizes Moon Mission Before Mars as Starship Development Accelerates 
Once Upon a Farm Raises Nearly $198 Million in IPO, Valued at Over $724 Million 
FDA Targets Hims & Hers Over $49 Weight-Loss Pill, Raising Legal and Safety Concerns 
Ford and Geely Explore Strategic Manufacturing Partnership in Europe 
Toyota’s Surprise CEO Change Signals Strategic Shift Amid Global Auto Turmoil 
Missouri Judge Dismisses Lawsuit Challenging Starbucks’ Diversity and Inclusion Policies 
Sony Q3 Profit Jumps on Gaming and Image Sensors, Full-Year Outlook Raised 
SpaceX Pushes for Early Stock Index Inclusion Ahead of Potential Record-Breaking IPO 
Australian Scandium Project Backed by Richard Friedland Poised to Support U.S. Critical Minerals Stockpile 
Alphabet’s Massive AI Spending Surge Signals Confidence in Google’s Growth Engine 
DENVER, Dec. 14, 2016 -- Can a Robot Be a Fiduciary?
That’s the core question in a new position paper released today by First Ascent Asset Management. Written by First Ascent CEO Scott MacKillop, the paper puts into perspective the ongoing bureaucratic, legal and lobbying debate about how to best regulate the technology and client service breakthroughs that robo-advisers bring to financial services.
From his examination of agency regulations, legal opinions and industry white papers, MacKillop, a former securities attorney, concludes that robos fail to meet the fiduciary duty of loyalty and the duty of care as expressed under the Investment Advisers Act of 1940, and are in fact operating as unregistered mutual funds in violation of the Investment Company Act.
“The robos are here to stay and will continue to make contributions that benefit both advisers and clients,” said MacKillop. “Now that we have some familiarity with the characteristics of this new set of players, the regulators need to get to work modifying the existing regulatory structure or create a new structure to accommodate them. The robo foot simply doesn’t fit into the fiduciary glass slipper.”
While robo technology has been a powerful positive force in financial services, and its technology benefits will be a part of every financial adviser’s practice in the years to come, it would be a mistake for regulators to try and wedge robo-advisers into existing regulations. “If robos are considered fiduciaries, the fiduciary standards that have served the industry so well will be diluted and we’ll be opening the gates to allow other less lovable players under the fiduciary umbrella,” says MacKillop.
About First Ascent Asset Management
First Ascent provides outsourced portfolio management services to financial advisors and their clients. The firm works directly with registered investment advisors (RIAs) and advisors affiliated with independent broker-dealers. Its portfolios are also available for distribution through “fund strategist” platforms. The firm’s founder, Scott MacKillop, is a 40-year veteran of the financial services industry and has been providing portfolio management services to independent advisors for over 25 years. First Ascent has both an internal investment group and an independent, outside investment committee to bring an added level of objectivity and fresh perspectives. Collectively, the team has over 200 years of experience.
More information: Morrison Shafroth [email protected] 720-470-3653
