FCA sets out good and poor AI practice; firms overestimate model accuracy
The UK financial regulator published good and poor practice for AI use by financial services firms on 19 October. It found that AI governance has lagged behind adoption, that firms overestimate model accuracy, and that they must report AI failures and near-misses as well.
Who is affected and how
- banking professional
- Claims about model accuracy must be backed by documented testing.
- chief financial officer
- The governance framework for AI deployments must be settled before go-live, not afterwards.
- fintech company
- Firms must demonstrate that customer interests come first in new AI features.
Sources
- FCA Good and Poor Practice - AI in financial services: good practice and areas for improvementglobal regulation tomorrow · Oct 19, 2026
- FCA sets out AI good and poor practice for UK firms | The Paypersthepaypers.com · Oct 19, 2026
- FCA publication on AI in financial services: the recommendations — DCWIdcwi.co.uk · Oct 19, 2026
- FCA reveals 86% of financial firms now use AIfinancial planning today · Oct 19, 2026
- FCA sets out good and poor practice for firms using AIcliffordchance.com · Oct 19, 2026
- UK FCA Sets Out Good and Poor AI Practices for Banksmarketreview.com · Oct 19, 2026
- A&O Shearman | FinReg | UK FCA good practice and areas for improvement in AI in financial servicesfinreg.aoshearman.com · Oct 19, 2026
- FCA publishes good practice and areas for improvement report: AI in financial services - UKGIukgicompliance.com · Oct 19, 2026
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