Following the publication of the Government’s pro-innovation strategy earlier this year, the Financial Conduct Authority’s (FCA) AI Update last week sets out how its existing regulatory framework maps to the Government’s five principles on Artificial Intelligence (AI) regulation (AI Principles). The Bank of England and the Prudential Regulation Authority (PRA)

Continue Reading FCA and PRA AI Update: Senior Managers’ accountability for the use of AI

BACKGROUND

The PRA, FCA and the Bank of England (the Regulators) have identified, for some time, the growing dependency of the UK finance sector on critical third parties who supply services to the finance sector (CTPs), including, in particular, the largest cloud service providers. The Regulators have

Continue Reading Operational Resilience in the UK Financial Services Sector: Proposed ‘Critical Third Party’ Regulations

What is FS2/23?

In October 2022, The Bank of England, Prudential Regulation Authority (PRA), and Financial Conduct Authority (FCA) published a discussion paper, (DP) 5/22, regarding the use of AI and Machine Learning (ML) in UK financial services and the regulators’ supervisory activity. A subsequent feedback statement, FS2/23

Continue Reading FS2/33: A guide to future AI regulatory approaches in the financial services sector?

Just before Christmas 2022, TSB was fined a total of £48.65million by the FCA and PRA for failings related to its migration to its new parent’s, Sabadell, technology platform, Proteo, in 2018. The impact on customers was considered material and resulted in findings of breaches of a number of the

Continue Reading Managing Migration and Go Live Risk: Lessons from the TSB – Sabadell Migration

Following the publication of the Financial Services and Markets Bill (“FSM Bill”) on 20 July 2022, the Prudential Regulatory Authority (“PRA”), the Financial Conduct Authority (“FCA”) and the Bank of England (“BoE”) (together, the “Supervisory Authorities”) on 21 July 2022 published their Discussion Paper P3/22 (the “DP”) that sets out

Continue Reading Operational resilience in the UK financial services sector: New requirements aimed at ‘critical third parties’ to be introduced

The world is currently in a state of unprecedented data availability. Within the financial sector, and indeed every other sector, organisations have found themselves with an abundance of data and information that they can use to better navigate the changing face of commerce. In many ways, this is incredibly helpful.
Continue Reading Financial Conduct Authority issues call for input on AI, synthetic data, and financial services innovation

Background

With the implementation of the Consumer Data Right (CDR) in the banking sector (known as ‘Open Banking’) well under way, the release of draft amendments to the CDR rules for the energy sector, and the continuing development of the framework for implementing the CDR in the telecommunications sector,
Continue Reading Consumer Data Right pipeline to cast a wide net

In July 2019, the FCA announced that it was partnering with the Alan Turing Institute to explore transparency and “explainability” of AI in the financial services sector. On June 11th 2021, the Alan Turing Institute published their report on “AI in Financial Services“. This FCA commissioned report
Continue Reading AI in Financial Services – The Alan Turing Institute

Written by Nichola Prescott, Associate, London

The Financial Conduct Authority has published a document setting out a list of points for financial services firms to consider when preparing for and evaluating third-party technology banking solutions.

Where a third-party provides services which are critical to a regulated firm’s business operation, it
Continue Reading FCA guidance for firms thinking of using third-party technology (off-the-shelf) banking solutions