InnovationHub: Publications of the AFM regarding SAAM and robo advice

 AFM Guideline on (semi)automated asset management and robo advice
On 15th of March, the AFM published a guideline clarifying the duty of care for SAAM. SAAM stands for asset management that is entirely or partially automated. The AFM states that it welcomes SAAM as long as the applicable duty of care provisions are complied with. The management summary that the AFM included at the beginning of the report summarizes 8 expectations that the AFM has of SAAM providers. To put shortly, the expectations regard the view that new technology must not only be directed at the commercial side of the provision of services, but must also be used to raise the duty of care towards private (individual) investors. This applies, for example, to the area of customer assessment.

While the guideline is specifically about SAAM, according to the AFM many of its parts are still applicable to other financial services that are provided in a (partially) automated manner, such as (semi)automated investment advice. The guideline is therefore useful for a broad group of investment service providers, but also for system builders, for example.

AFM’s view on robo advice
On the 15th of March the AFM also published a report that included its view on advice that is provided in a (partially) automated manner. The “view document” includes several important points which the AFM wants to make with regards to this type of service in the market. The AFM appears to be in favour of robo advice in specific situations and only for those clients for whom such a form of advice is appropriate. Furthermore, the AFM emphasizes that the bar for the interpretation of the duty of care regarding robo advice doesn’t differ from physical advice.