ESAs published a report on the results of the monitoring exercise on automation in financial advice. The report shows that while the phenomenon of automation in financial advice seems to be slowly growing, the overall number of firms and customers involved is still quite limited. ESAs believe that no immediate action is necessary, as the identified risks have not materialized and the growth of automation in financial advice is limited.
The report presents the results of the monitoring activity and sets out a brief summary of the recent sectoral work carried out by ESAs in the area of automation in financial advice. It also sets out the main results of the monitoring exercise on the evolution of the market in automation in financial advice, along with the related regulatory or supervisory activities in the different member states or sectors.
The report shows that the previously identified (by ESAs) risks and benefits of this phenomenon have largely been confirmed by national competent authorities and remain valid. In examining the emerging business models, ESAs found that automated services are being offered, through partnerships, by established financial intermediaries, rather than by pure fintech firms. Additionally, the emerging trends include the use of Big Data, chat bots, and a broader range of products. ESAs concluded that, given the overall importance of automation in financial advice and the emergence of ongoing changes to business models, a new monitoring exercise will be conducted if and when the development of the market and market risks warrant this work.
Keywords: Europe, EU, Banking, Insurance, Securities, Fintech, Financial Advice Automation, ESAs
Previous ArticleDNB Publishes Version 1.3 of AnaCredit Reporting Documentation
Next ArticleBaFin Announces Supervisory Priorities for 2019
EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.
BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.
HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.
EBA published an erratum for technical package on phase 1 of the reporting framework 3.0.
APRA updated a frequently asked question (FAQ), for authorized deposit-taking institutions, on the measurement of credit risk weighted assets.
EBA published the quarterly risk dashboard, along with the results of the Risk Assessment Questionnaire survey among 60 banks and 15 market analysts.
ECB concluded the public consultation on the introduction of a digital euro in EU.
ECB published a guide that sets out the supervisory approach to consolidation in the banking sector.
The SRB Chair Elke König published an article setting out work priorities for 2021.
FDIC has selected 11 technology companies—including BearingPoint, Fed Reporter, Inc, and S&P Global Market Intelligence, LLC—for inclusion in the third and final phase of the rapid prototyping competition.