The three European Supervisory Authorities (ESAs) – EBA, EIOPA and ESMA – have launched a Discussion Paper on automation in financial advice, aimed at assessing what, if any, action is required to mitigate the associated risks. The Discussion Paper explains the concept of automation in financial advice, where a financial institution provides advice or recommendations to consumers without, or with very little, human intervention and relies instead on computer-based algorithms and/or decision trees, and highlights potential benefits and risks associated with this particular innovation.

The closing date for responses is 4 March 2016.