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Financial Planning

Fiduciary rule dictates asset manager robo adviser plans

By Suleman Din

The language is clear, says Betterment’s legal counsel Seth Rosenbloom.

“There is a big difference between independent robos and robo advisers attached to fund companies,” he says. “Are you independent and choosing the best and cheapest of otherwise interchangeable funds, or are you beholden to funds otherwise associated with your firm?

“Even if you do fee leveling on top — say the ultimate client fees are 30 basis points — if you are recommending your own funds, you are not a level fee fiduciary.”

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This article originally published November 2nd, 2016 on Financial Planning