About the Course
Introduction
This CLE course will discuss regulatory compliance issues for robo-advisers and AI-driven investing, as well as considerations for plan sponsors and fiduciaries related to the use of robo-advisers that provide investment advice and discretionary management services to ERISA-governed retirement plans. The discussion will include review of the governing law for robo-advisers under the Investment Advisers Act of 1940, and review of ERISA fiduciary status and prohibited transaction exemptions. The panel will also provide guidance to counsel for plan sponsors and fiduciaries on mitigating litigation risk and the best practices for selecting monitoring the use of robo-adviser services.
Description
AI-driven investing, which is increasingly being used by robo-advisers, typically involves varying levels of, or even no, human interaction with clients. While AI-driven investing can provide retail investors with affordable investment guidance, and other services, it presents unique compliance issues under the Investment Advisers Act of 1940 and other regulatory challenges.
For ERISA-covered retirement plans that offer AI-driven investing, via robo-advisers or otherwise, plan sponsors and fiduciaries must comply with ERISA's fiduciary duty requirements, including prudent selection and monitoring of the services, and ensure that the terms of applicable prohibited transaction exemptions are met.
Counsel to AI-driven investment advisers must be prepared to advise on compliance with the Advisers Act, required disclosures for online platforms, offering materials, and client questionnaires. Counsel to retirement plan sponsors must also be prepared to evaluate these services, contracts, disclosures, and conflicts of interest. Plan sponsors and fiduciaries should develop best practices related to selection and use of robo-advisers and AI-driven investing for their plans, and address ways to mitigate litigation risk.
Listen as our panel guides you through the regulatory compliance scheme for AI-driven investing and robo-advisers under applicable guidance, and discusses best practices.
Presented By
Ms. Capezza is an accomplished employee benefits and executive compensation lawyer with more than 25 years of experience advising clients on ERISA, benefits, and executive compensation matters, including in connection with corporate transactions. She also brings this knowledge and experience to counsel clients that are digitally transforming their business on the use of automation and artificial intelligence in the workplace and the related implications for employee benefits and compensation for their changing workforce. Ms. Capezza is called to represent Fortune 500 companies, multinational corporations, nonprofit entities, medium-sized businesses, and individual executives across a variety of industries, including financial services, health care, life sciences, technology, artificial intelligence, media, telecommunications, hospitality, and retail.
Mr. Mount counsels financial services clients on the increasingly complex securities law landscape and the regulations governing advisers and broker-dealers. His experience includes advising broker-dealers, investment advisers, bank fiduciaries, and pooled investment vehicles on compliance with federal and state securities laws, including Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) rules and regulations. Mr. Mount is devoted to ensuring that his clients remain competitive within their industries by keeping abreast of the relevant state and federal regulations affecting their business. He offers clients tailored end-to-end advisory solutions to help them stay ahead of the curve.
Mr. Shuman focuses his practice in ERISA and employee benefit law, representing welfare benefit and pension plans, plan sponsors, and plan administrators in matters involving plan operation from design and plan drafting to compliance issues and termination. With nearly 25 years of experience, Mr. Shuman has provided trusted counsel to clients ranging from small businesses to Fortune 500 companies. He has represented plans and plan sponsors in both voluntary compliance program submissions and investigations by the IRS, and the DOL. Mr. Shuman has also worked to abate millions of dollars in proposed penalties, including those arising under the ACA’s employer mandate. He has represented various insurers and managed care organizations before state and federal courts in civil actions involving billing disputes, benefit claims, allegations of breach of fiduciary duty, discrimination claims, and subrogation claims. Mr. Shuman has practiced before the Public Service Commission of West Virginia, representing a range of utilities in administrative hearings, together with obtaining the issuance of siting certificates for exempt wholesale generators powered by renewable energy and natural gas.
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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Date + Time
- event
Thursday, June 18, 2026
- schedule
1:00 p.m. ET./10:00 a.m. PT
I. SEC compliance issues
A. Regulatory Framework Governing Robo-Advisers under the Investment Advisers Act of 1940
B. Issues raised by the use of AI in providing advice
- Compliance with the fiduciary duty
- Adequacy of disclosures
- Algorithm design and bias
- Cybersecurity and data privacy
- Conflicts of interest
- Vendor due diligence
- Recordkeeping
II. ERISA compliance issues
A. What are AI-driven investing and a robo-adviser?
B. Fiduciary status under ERISA
C. Exclusions from "investment advice"
D. Fiduciary duties under ERISA
E. Application of prohibited transaction provisions and exemptions
III. Litigation considerations
A. Implications and applications of Cunningham v. Cornell University and its progeny
B. Recent trends in ERISA litigation involving robo-advisers
C. Development of best practices
The panel will review these and other key issues:
- What disclosures does the SEC require, and where should they appear?
- What are effective practices for compliance with the Advisers Act?
- How do the fiduciary duty and prohibited transaction provisions of ERISA and the IRC apply to AI-driven investing, robo-advisers, and their services?
- What are the available prohibited transaction exemptions?
- What litigation trends impact use of robo-advisers, and what best practices can plan sponsors and fiduciaries implement?
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