Bank of Italy Deputy Governor Gian Luca Trequattrini called for stronger controls, adviser accountability and financial education as technology widens access to investment services. In a speech at a conference marking the 10th anniversary of the Supervisory Body for the Single Register of Financial Advisors, he highlighted how digital distribution can lower costs and investment thresholds while creating conduct risks and systemic vulnerabilities through shared algorithms and concentrated technology providers.
Automated advice can extend professional investment services to customers with limited assets, but technology does not replace advisers’ judgment or responsibility for recommendations. Advisers must understand the logic of algorithmic tools, check their outputs against clients’ profiles and depart from them when necessary. Controls should assess whether recommendations meet customer needs, how remuneration influences conduct and whether problems are corrected promptly, rather than focusing solely on documentation. Financial education also requires public investment through schools, institutional campaigns and accessible tools, because individual advisers cannot compensate for gaps in customers’ understanding of risk, returns and investment horizons.
The concentration of digital services among a small number of large intermediaries increases the potential reach of operational, technological and conduct risks. In 2024, only 6% of banks offered automated advice to customers with limited assets, but those banks accounted for 40% of securities held in custody. Widespread use of similar algorithms can produce converging recommendations and simultaneous selling under stress, while reliance on a few platforms or model providers can spread shocks across institutions. The existing Digital Operational Resilience Act (DORA) addresses dependency risks by requiring intermediaries to map critical dependencies, secure contractual provisions for data portability and service continuity, and maintain credible exit strategies.