Robo-advisers, those automated bots that offer up personalized investment advice with little, if any, human contact, face increased regulatory scrutiny as they grow more popular. After monitoring and engaging them for several months, the SEC’s Division of Investment Management lent a personal touch in guidance published in February 2017, urging robo-advisers to improve risk disclosures and compliance programs.

Recognizing that the appeal of robo-advisers has expanded beyond millennials to all age groups and classes of investors, the Division addressed the legal and practical challenges these automated advisers face as they apply new technology to deliver fiduciary services traditionally delivered face-to-face.