ESAs report on financial advice automation

The joint committee of ESAs has published the results of its monitoring exercise on automation in financial advice. The ESAs found that automation is growing but that there are still only a limited number of firms and customers involved. Moreover, the risks many had identified with the practice have not materialised, not least because most of the offerings are designed and operated by large financial institutions rather than pure fintechs. As a result, the ESAs do not think there is any need for any further action at the moment, and will conduct another monitoring exercise if they think it appropriate in the future.