CFA Institute calls for greater clarity from FCA's AI approach

Responding to the FCA's Mills Review into AI, the CFA Institute backed utilising the UK's current principles-based framework, including Consumer Duty and the Senior Managers and Certification Regime (SMCR), rather than introducing standalone AI-related ones. However, clearer definitions of what "reasonable steps" and "meaningful oversight" mean under SMCR and Senior Management Arrangements, Systems and Controls (SYSC) when AI is deployed in material retail use cases were requested by the body. The CFA highlighted that supervisory expectations must be clearer and more practical as AI s...