The SEC Announces First Enforcement Actions Against Robo-Advisors
January 4, 2019
On December 21, 2018, the Securities and Exchange Commission (SEC) announced settlements with two robo-advisors, Wealthfront Advisers LLC and Hedgeable Inc., for making false statements about investment products and engaging in misleading advertising in violation of the Investment Advisors Act of 1940.
These settlements mark the SEC’s first enforcement actions against robo-advisors and serve as a reminder that, although technology may change how an investment adviser operates, the SEC expects full compliance with all requirements of the Act.
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