FCA not looking to 'put brakes' on technology and AI innovation

'Artificial intelligence tools are not stand alone systems'

clock • 2 min read

The Financial Conduct Authority (FCA) is not looking to “put the brakes” on technology innovation such as the development and use of artificial intelligence (AI) by companies, chief executive Nikhil Rathi says.

In a speech at the Investment Association's 2024 annual conference on Wednesday (5 June), Rathi reaffirmed the FCA's view that AI and technology governance should follow the Consumer Duty rules and market integrity framework. In addition, he highlighted the potential of AI in aiding passive investments, as geopolitical concerns put pressure on indices tracked by passive funds. According to Rathi, deploying AI to build technology-based solutions for passive investors would help them carefully assess the risks that are right for them over the long term. Nevertheless, he raised questi...

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