facebookSmartly closed down previously. What might happen if the same thing happened to other Robo advisor (SYFE)? Will investor be forced to liquidate our shares? - Seedly

Anonymous

17 Jun 2021

Robo-Advisors

Smartly closed down previously. What might happen if the same thing happened to other Robo advisor (SYFE)? Will investor be forced to liquidate our shares?

What if Syfe closes down?

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Tan Choong Hwee

17 Jun 2021

Solutions Specialist at Providend

All robo-advisors have to place customer money and holdings in separate custodian accounts. They can't touch those money and holdings in the event that they go bust.

There are 2 ways the robo-advisors operate with regards to your holdings:

  1. Ownership of holdings is in your own name, in which case you have full discretion to decide when to liquidate your holdings. AutoWealth, Endowus are such robo-advisors.

  2. Ownership are comingled with other investors, in which case the whole portfolios with the robo-advisor have to be liquidated and your portion of the proceeds will go to you. Smartly was one such robo-advisor, others are kristal.AI, StashAway, Syfe.

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