Are robo-advisors regulated by Monetary Authority of Singapore (MAS)?

Yes, they are regulated by the MAS. Robo-advisors are required to be licenced under the Securities and Futures Act (SFA) and/or Financial Advisers Act (FAA).

However, as robo-advisor platforms are a new and developing sub-set of the fintech industry, MAS is keen not to stifle digital innovation with lots of red tape.

Robo-advisors can be licensed under the SFA even if they lack the usual corporate track record requirements, as long as they have board or senior management members with relevant experience in fund management and technology, offer only non-complex collective investment schemes and submit to an independent audit after the first year.

They can also be licensed under the FAA as long as they are able to gather customer data and assess their customers’ risk profile to prevent recommending the wrong types of investments.