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Welcome to Shearman & Sterling’s FinTech Insights, where we provide you with real time insight and key trends on the technological revolution that is transforming the financial services industry. Here you can find relevant information on the latest surrounding the regulatory framework, digital banking, blockchain, distributed ledger, cryptocurrencies, ICO’s and much more.

  • Two Robo-Advisers Hit with Disclosure and Advertising (including Social Media) Violations
    01/02/2019
    On December 21, 2018, the Securities and Exchange Commission (SEC) filed and settled charges against two robo-advisers (i.e., advisers that provide automated, software-based portfolio management services) for making false disclosures and publishing misleading advertising materials on their websites and social media pages.  The two advisers agreed to cease and desist from further violations of the securities laws and to pay fines of $250,000 and $80,000, respectively.

    Leaving aside the details of their alleged misstatements, what many observers will find most instructive are, first, that the twin settlements – announced on the same day – suggest a coordinated review of robo-adviser businesses and, second, the SEC’s focus in both settlements on social media practices.

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