Canada    FinTech Guide    Chapter 2    United States of America


2. Asset and Portfolio Management
United States of America  United States of America

There is growing acceptance of the use of robo-advisers in the United States with leading financial services firms deploying the technology as part of their service offerings.



Legal Affairs


Advisers to funds registered with the SEC and advisers to private funds (e.g., hedge funds) are required to be registered with either the SEC or one or more state securities regulators. Advisers to funds registered with the SEC and advisers to private funds with over $100 million in assets under management (AUM) must be registered with the SEC. Advisers to private funds in New York and Wyoming may also be required to register with the SEC. Advisers to private funds with less than $100 million in AUM must register with the states in which they conduct business.



Economic Conditions


We are not in position to provide this data or project market participants, but suffice it to say that nearly all of the major brokerage firms operate in the United States and the market is enormous.



Miscellaneous


The SEC is focusing on advisers that use algorithms (“robo-advisers”) as part of providing service to funds that are registered with the SEC and to private funds. Robo-advisers will need to proceed with caution because the regulation of their activities is unclear.

In a market as large as the United States, there can be significant economic differences between regions.



Contributing Authors

Carlsmith Ball LLP

Gerald A. Sumida
Honolulu, Hawaii, USA


Carrington, Coleman, Sloman & Blumenthal LLP

Bret Madole
Dallas, Texas, USA


Charles Jordan
Dallas, Texas, USA


Duane Morris LLP

Hope P. Krebs
Philadelphia, Pennsylvania, USA


Thomas Schmuhl
Philadelphia, Pennsylvania, USA


Frost Brown Todd LLC

Joseph Julnes Dehner
Cincinnati, Ohio, USA


Gray Plant Mooty

Christopher Carlisle
Minneapolis, Minnesota, USA


Gaylen Knack
Minneapolis, Minnesota, USA


Holland & Knight LLP

Jorge Hernandez-Toraño
Miami, Florida, USA


Miller Nash Graham & Dunn LLP

Chris Helmer
Portland, Oregon, USA


Kimball H. Ferris
Portland, Oregon, USA


Polsinelli PC

Anthony Nasharr
Chicago, Illinois, USA


Richard Levin
Denver, Colorado, USA

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Chapter Index:


1. Payment Services / Mobile Payment

2. Asset and Portfolio Management

3. Consulting and Broking Services / Robo-advisory / Auto-trading

4. Trading Platforms / Social Trading Platforms / Signal Following

5. Crowdfunding / Crowdinvesting / Crowdlending

6. Virtual Currency - Bitcoin

7. Loan Services / Factoring / Loan Broking / Finetrading

8. Online Banking Services

9. Analytics and Research / Data Management / Risk Management

10. Accounting

11. Identification

12. Online-pawning

13. InsurTech

14. RegTech

15. Initial Coin Offerings (ICOs)

Disclaimer:
The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: 1 May 2018