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Welcome to Shearman & Sterling’s FinTech Blog, where we provide you with insight on key trends in the FinTech ecosystem. Here you can find relevant information with the latest on digital banking, FinTech regulation, digital assets, blockchain, AI, and 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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