Convenience can sometimes come at a cost – ask and verify
The Arizona Corporation Commission has issued an investor awareness advisory providing information and resources to help investors better understand robo -advisers. The advisory discusses how robo -advisers work and things to consider when investing with a robo -adviser.
Easy-to-use smartphone apps and online portals make setting up an account with a robo-adviser convenient and quick, which is contributing to their increasing popularity. For those considering a robo-adviser, it is best to first ensure this type of service meets your short- and long-term investing needs.
Firms that offer robo-advisory services must be registered. Investors looking to utilize the convenience of robo-advisers to help them manage their portfolios should verify the investment firm’s background, including registration status and possible disciplinary history with the Corporation Commission’s Securities Division.
The full “Are You an Informed Investor?” advisory is available on the Commission’s investor education website, www.azinvestor.gov, under Investor Alerts. Direct link: http://azinvestor.gov/Documents/Robo-Adviser-Investor_Alert.pdf.
Before making any financial decisions, ask questions, verify the answers with multiple sources, and contact the Arizona Corporation Commission’s Investigator on Duty for background information by telephone at 602-542-0662 or by email, info@azinvestor.gov.
