The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has issued a statement providing initial guidance to firms using Artificial Intelligence technologies (AI) when they provide investment services to retail clients.
While the diffusion of AI is still in its initial phase and the development is not uniform across firms and Member States, the potential impact on firms’ behaviours and retail investor protection is likely to be significant. Importantly, firms’ decisions remain the responsibility of management bodies, irrespective of whether those decisions are taken by people or AI-based tools. To ensure compliance with MiFID II obligations and safeguarding investors’ interests of AI-driven solutions, ESMA has decided to publish a statement to provide some initial guidance to investment firms utilising AI, in light of their key obligations under MiFID II and to emphasise the imperative to always prioritise…
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