Over the past decade, the Australian financial services industry has seen the emergence of digital advisers. There is now a strong digital advice presence in the Australian financial services market providing robo-advice to many Australians. The Australian Government has demonstrated its firm support of this evolution in the expectation that it will enable more Australians to gain easy access to financial services at lower costs.
Digital advice has the ability to reach millions of Australians, however, this broad reach comes with increased associated risks. These risks include technology failures, compliance failures, lack of risk management and loss to consumers. The major players in the industry, including ASIC and the Financial Ombudsman Service Australia (FOS), have along with providing practical guidance in the space, alerted digital advisers of their responsibilities and accountabilities in compliance, governance and risk management.