{"id":46827,"date":"2019-10-18T13:12:22","date_gmt":"2019-10-18T03:12:22","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=46827"},"modified":"2019-10-23T05:52:52","modified_gmt":"2019-10-22T19:52:52","slug":"lime-fs-shuts-down-digital-advice-tools","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2019\/10\/18\/lime-fs-shuts-down-digital-advice-tools\/","title":{"rendered":"Lime FS Shuts Down Robo Advice Tools"},"content":{"rendered":"

Sydney-based Australian financial services licensee, Lime FS, has agreed to close down two digital advice tools following concerns raised by ASIC.<\/span><\/p>\n

<\/p>\n

\"\"<\/a>
ASIC Commissioner, Danielle Press …advice provided through digital tools\u00a0must meet the same legal obligations required of human advisers<\/span><\/figcaption><\/figure>\n

Lime FS\u2019 corporate authorised representatives, Plenty Wealth and Lime Wealth, are digital advice providers authorised to provide personal financial advice to consumers.<\/p>\n

After reviewing a sample of advice files from Plenty Wealth and Lime Wealth, ASIC raised its concerns with Lime FS about the quality of advice being generated by the online tools and Lime FS\u2019 ability to monitor the advice. <\/span><\/p>\n

Plenty Wealth\u00a0provided advice via an online tool on:<\/span><\/p>\n

    \n
  • Life insurance reviews<\/span><\/li>\n
  • Budgeting analysis<\/span><\/li>\n
  • Tax<\/span><\/li>\n
  • Investment and superannuation recommendations<\/span><\/li>\n<\/ul>\n

    Lime Wealth\u00a0provided advice via an online tool on:<\/span><\/p>\n

      \n
    • The establishment of self-managed super funds<\/span><\/li>\n
    • Purchasing property with superannuation<\/span><\/li>\n
    • Commencing and ceasing pensions<\/span><\/li>\n
    • Contributions into superannuation<\/span><\/li>\n<\/ul>\n

      The regulator stated in its release that it was concerned the level of inquires made by the online tools about client objectives, financial situation and needs, were inadequate. <\/span><\/p>\n

      It noted that in some instances, the recommendations generated by the tools were in conflict with client goals or with other recommendations also generated by the tools. <\/span><\/p>\n

      As a result of these concerns, Lime FS chose to close down both online tools for the foreseeable future.<\/span><\/p>\n

      “…the advice must be appropriate to the client and comply with the best interests duty.”<\/span><\/h6>\n

      ASIC Commissioner, Danielle Press<\/strong>, said, \u201cDigital advice tools offer a convenient and low-cost alternative to consumers who may otherwise not seek personal financial advice. <\/span><\/p>\n

      \u201cHowever, the advice provided through these tools must meet the same legal obligations required of human advisers \u2013 the advice must be appropriate to the client and comply with the best interests duty,\u201d she said. <\/span><\/p>\n

      Press added: \u201cASIC expects AFS licensees and financial advisers using or recommending digital advice tools to ensure that they adequately monitor and test the advice for quality and appropriateness.\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

      Sydney-based Australian financial services licensee, Lime FS, has agreed to close down two digital advice tools following concerns raised by ASIC.<\/p>\n","protected":false},"author":20,"featured_media":46882,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[48,8,7],"tags":[4247],"class_list":["post-46827","post","type-post","status-publish","format-standard","has-post-thumbnail","category-company-news","category-compliance-regulation","category-technology","tag-feature"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/46827","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=46827"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/46827\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/46882"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=46827"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=46827"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=46827"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}