Financial Conduct Authority

The Financial Conduct Authority (FCA) is the independent regulator for financial services firms and financial markets in the United Kingdom. It sets rules for banks, insurers, asset managers, and payment firms, and it has signaled that it will apply its existing principles, such as treating customers fairly and maintaining clear accountability, to the use of AI in financial services rather than creating a separate AI rulebook. For enterprise compliance teams, that means AI systems used in lending, pricing, customer communications, or trading can draw FCA scrutiny under rules that already apply, so governance records, explainability, and documented accountability for automated decisions need to be in place now.

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EnforcementUK2026-10-20

FCA Says AI Near-Misses Must Be Reported Under Existing Rules

The UK Financial Conduct Authority has signaled that mandatory incident reporting rules already require firms to report significant AI failures and near-misses. FCA chief data officer Jessica Rusu cited agentic AI systems as a particular concern. She warned that consumer harm, cyber vulnerabilities, and operational failures can occur faster and at greater scale as AI autonomy increases. UK-regulated financial services firms must now treat AI near-miss capture as an active compliance obligation, not a future requirement.

Financial Conduct Authority incident reporting agentic AI financial services operational resilience near-miss reporting UK