SigFig, an Automated Investment Firm, Will Team Up With UBS (The New York Times)
UBS has made a strategic investment in SigFig, a robo-advisor that targets higher net worth clients than its competitors. UBS plans to provide the service to its RIAs, allowing them to spend less time constructing portfolios and more time talking to clients. This move adds UBS to the ranks of incumbents building their own robo-advisor platforms.
Venture capitalists are waiting for winter and holding onto their acorns. Instead of pouring money into new startups, they’re focusing on keeping their existing investments alive. As they hoard cash, tech VC and private equity “dry powder” has increased to $382 billion, its highest level in years.
At TechCrunch Disrupt last week, two fintech unicorns butted heads. The CEO of Betterment argued in favor of passive, index fund investing, and the brokerageg strategy of “making money off your money without you knowing it.” Robinhood’s CEO defended his company’s mission to offer stock trading without commissions as a tool for investors who may not be saving for retirement or building their nest-egg.
The US created legislation to protect retail investors after the stock market crashed in 1929, but Britain didn’t follow suit until 2000, when the internet was already commonplace. At this point, it was clear that a rules-based set of laws would never keep up with innovative finance. So Britain built principles-based regulation that adapts quickly to new technology. Here’s what it meant for equity crowdfunding and other new fintech sectors across the pond.