The European Supervisory Authorities (EBA, EIOPA and ESMA jointly) have issued a discussion paper on automation in financial advice. It is aimed at assessing what, if any, action is required to harness the potential benefits of this innovation and mitigate its risks. The paper explains the concept of automation in financial advice, where a financial institution relies on computer-based algorithms and/or decision trees, and highlights potential benefits and risks associated with this particular innovation. Potential benefits identified include lower costs, higher consistency of advice and a bigger number of customers that can be reached. Associated risks include the inability of consumers to talk to a human adviser and the increased exposures to IT failures. Consultation closes 4 March 2016. (Source: ESAs Consult on Automation in Financial Advice)