How does the FCA regulate AI in financial services?

The UK has no single AI law. Regulators apply the rules they already have, on data, consumer protection, medicines, financial services and more, to AI products in their areas, while government sets out plans on compute, skills and the most powerful models. For a start-up, what matters is which regulator's existing rules already reach its product, and what each is saying about AI this year. AI on GOV.UK.

What it means for your start-up

The FCA applies its existing rules to AI rather than writing new ones, above all the Consumer Duty, which asks firms to show good outcomes for customers. It has set up an AI Lab and live testing for firms trying AI with real customers. For a fintech, the questions are how you explain automated decisions and how you prove they treat customers fairly.

What to do now

1. Check how the Consumer Duty applies to every automated decision your product makes about customers.
2. Look at the FCA's AI Lab and live testing if you want to try a new use of AI with supervision.
3. Keep records of how your models are tested for bias and errors. It is what the FCA will ask for.

Latest from government

• Sovereign AI puts cash and compute behind UK startup using AI to redefine chemistry
  Cabinet Office, Department for Business, Innovation, Science and Trade · 5 November 2026
  Potential Sciences, a British startup aiming to unlock the next big advance in how we use AI to design new medicines, has secured backing from Sovereign AI
• EM on EU Regulation 2024/1689 on Artificial Intelligence
  Department for Business, Innovation, Science and Trade · 4 November 2026
  The government's summary of an EU regulation laying down harmonised rules on artificial intelligence and amending several Regulations and Directives.
• Partial application of the EU AI Act in Northern Ireland
  Department for Business, Innovation, Science and Trade · 4 November 2026
  Guidance on the specific and limited application of the EU AI Act in Northern Ireland through the Windsor Framework.

In Parliament

Marked: mentions fintech directly.

• What discussions his Department has had with the Financial Conduct Authority and Prudential Regulation Authority regarding the risks posed by autonomous…
  Written answer · 4 November 2026
  Asked by Al Carns (Lab). Financial Services: Artificial Intelligence — The Government is collaborating closely with regulators to monitor and respond to risks posed by AI to consumers, firms and financial stability.…
• What steps she is taking to ensure that technology platforms, link-in-bio intermediaries and payment providers do not profit from AI-generated content that…
  Written answer · 26 October 2026
  Asked by Samantha Niblett (Lab). Entertainers: Copyright and Artificial Intelligence — Performers should be able to work and exist online without their work being exploited without consent. The UK has established…
• How many firms have participated in the Financial Conduct Authority's Supercharged Sandbox and AI Live Testing; what outcomes have been recorded; and whether…
  Written answer · 19 October 2026
  Asked by Dr Ben Spencer (Con). Financial Services: Artificial Intelligence — The first cohort of the Financial Conduct Authority’s (FCA) Supercharged Sandbox had 22 participating firms. The second cohort, which is…
• What steps she is taking to ensure rights holders are remunerated when their copyright works are used to train artificial intelligence models.
  Written answer · 15 September 2026
  Asked by Mr Joshua Reynolds (LD). Artificial Intelligence: Copyright — This government believes creatives should be able to know and control how their content is used by AI firms and be able to seek fair payment.…
• What assessment she has made of the potential implications for her policies of the hacking of Hugging Face by collaborating agents, and what plans he has for…
  Written answer · 6 November 2026
  Asked by Neil O'Brien (Con). Artificial Intelligence — The Hugging Face incident represents a real-world example of why research to understand the risks posed by advanced AI is so important. The Government takes…
• What progress his department has made on updating its guidance for BSL procurement to consider advances in AI.
  Written answer · 6 November 2026
  Asked by Anneliese Dodds (Lab). Sign Language: Public Sector — The Department recognises the opportunities presented by AI while ensuring that accessibility and quality remain central to the procurement of services. The…
• Following the additional £140 million for the Sovereign AI Unit announced in the Budget, whether a single accountable cross-government lead has been designated…
  Written answer · 5 November 2026
  Asked by Lord Nagaraju (Lab). Artificial Intelligence — The Minister for Artificial Intelligence, joint Minister in BIST and the Cabinet Office, leads on Sovereign AI. The Government will continue to keep Parliament…

Related guides

• How is AI in healthcare regulated in the UK?
• Is there a UK AI law my software start-up must follow?
• What are the UK rules on AI in education?

Contains public sector information licensed under the Open Government Licence v3.0. Contains Parliamentary information licensed under the Open Parliament Licence v3.0. General information, not legal advice.