Robo advisory services have been gaining traction over time in Nigeria with the operation of early version Robo Advisors such as PiggyVest. The growth has been attributed to Nigeria’s growing middle class and increasing smartphone penetration. According to statistics, the projected assets under management in the robo advisory market in Nigeria are expected to reach US$4,700,000,000 this 2024.
Who is a Robo Adviser?
A robo-adviser is a platform or other form of an automated financial advisor that provides algorithm-driven investment or wealth management services with little or no human intervention.
The Proposed Rules on Robo Advisory Services (''Robo Advisory Rules''), issued by the Securities and Exchange Commission (''SEC"), heralded robo-advisory activities in Nigeria. However, the Robo Advisory Rules focus on the person or entity providing the robo advisory services and not the platform or automated process itself.
Under the Robo-Advisory Rules, a Robo Adviser is a person who performs digital advisory services (''Robo Adviser''). Digital advisory service is defined as the provision of investment advice using automated, algorithm-based tools which are client-facing, with little or no human adviser interaction in the advisory process Notwithstanding, the Robo Advisory Rules recognize the existence of fully automated Robo Advisers which require no intervention of a human adviser in the advisory process.
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