Intelligent Investment Advisors: Legal Risks and Transformation of Legal Regulation in the Context of Financial Security

Intelligent investment advisors, who have become widespread in modern financial markets, have called into question the adequacy of the traditional legal regulation model, primarily focused on individual investment relationships. The algorithmization of investment recommendations and their scalable application have led to legally significant risks no longer being purely individual but manifesting at the level of the financial market itself. The algorithmic unification of investment strategies and automated execution of decisions result in the mass and synchronous execution of similar investment actions, which, under conditions of platform concentration, can amplify market fluctuations even with formal compliance with existing legal requirements. This reveals the structural limitations of regulatory logic, built solely around fiduciary responsibility and individual control. Based on a comparative analysis of the regulation of intelligent investment advisors in the United States, the European Union, and China, it is shown that, despite differences in institutional solutions, these legal systems generally go beyond the traditional private law approach to investment risk management. It is concluded that there is a need to shift the emphasis in legal regulation from an individual investment attitude to financial risk management, taking into account the objectives of financial security. This does not imply a weakening of investor protection but rather its integration into a broader mechanism for preventing systemic risks in financial markets.

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