A report published in 2013 , commissioned by asset manager , Federated Investors , challenges Department of Justice ( DoL ) Secretary Thomas Perez 's investigation of robo - advisors . "Robos may be unregistered investment companies. The paper , which examines the robo phenomenon , makes a number of claims that in short do not meet the DoL 's proposed best practice contract . It also suggests that robo - advisors may be unregistered investment companies in violation of both the Investment Company Act of 1940 and SEC regulation .
A report published in 2013 , commissioned by asset manager , Federated Investors , challenges Department of Justice ( DoL ) Secretary Thomas Perez 's investigation of robo - advisors . The paper , which examines the robo phenomenon , makes a number of claims that in short do not meet the DoL 's proposed best practice contract . It also suggests that robo - advisors may be unregistered investment companies in violation of both the Investment Company Act of 1940 and SEC regulation .