In light of BoE’s renewed RTGS service which went live on 28 April 2025, Victoria Cleland – Executive Director for Payments – has delivered a speech on synchronised settlement plans and initiatives in...
Category - Fintech & Innovation
Laura WilesFCA speaks on harnessing AI and technology
Jessica Rusu has spoken on how the FCA plans to harness AI and tech to deliver its strategic priorities. It says that proper use can help it deliver on all 4 pillars, including helping firms to get new customers and...
Emma RadmoreBoE speaks on RTGS 2 and innovation
Victoria Cleland – BoE Executive Director of Payments – has delivered a speech at the UK Finance Digital Innovation Summit on the success of the renewed Real Time Gross Settlement (RTGS) service, and ongoing...
BoE launches DLT innovation challenge
The BoE has launched a distributed ledger technology (DLT) innovation challenge in collaboration with the Bank for International Settlements Innovation Hub London Centre. The challenge aims to engage with the private...
Regulators revise MoU on payments cooperation
The FCA, PRA, BoE and PSR have signed a memorandum of understanding on cooperating and coordinating their functions in relation to UK payments. Since the last review in December 2024, the regulators found that...
New guidance on quantum-safe cryptographic practices
The Cross Market Operational Resilience Group has published guidance to help the financial sector transition towards quantum-safe cryptographic practices as institutions move to post-quantum cryptography. PQC refers to...
Caroline ChurchillInnovate Finance queries FCA proposals on contactless limits
Innovate Finance has responded to the FCA call for input on contactless limits. It queries whether the proposals really do align with economic growth objectives. It cites the crucial need for regulatory focus on SCA and...
Data (Use and Access) Bill: now agreed
The Data (Use and Access) Bill (DUA Bill) has been agreed upon and is now awaiting Royal Assent. This significant milestone follows a lengthy and complex journey through Parliament, marked by debates and amendments, particularly in the latter stages around the issue of whether the DUA Bill should cover transparency on AI models using copyrighted works to train the models (a topical but somewhat tangential issue to the core subjects covered in the Bill).� This led to a “ping pong” between the Lords and Commons where we saw a number of passionate debates on the topic of transparency. Baroness Kidron, speaking on behalf of creatives in the Lords, talked about the UK Government cosying up to tech companies. She said she has spoken to AI academics and tech companies and one such said to her “of course we prefer it for free, but if you don’t protect your IP, we will take it just like we did your high street”. Baroness Jones of Whitchurch, the Under Secretary of State for DSIT, stated that the Government will soon work on more comprehensive AI legislation. She emphasized the need to await the outcome of the economic impact assessment and the report on AI and copyright to determine what further actions, including legislation, might be necessary. After a few weeks of intense debates, where the tension between the rights of creators and the interests of the UK tech industry was evident, the Lords eventually conceded on the issue of transparency on 11 June 2025 (at least in terms of the DUA Bill).
The DUA Bill aims to harness the power of data to drive economic growth, and make it easier for businesses to use technology while maintaining high standards of data protection.� The DUA Bill will introduce new smart data schemes, establish digital verification services, create a national underground asset register, and simplify the data protection regime in the UK (though less extensively than previously proposed under the last Government). The provisions in the DUA Bill on Smart Data will support open banking in the UK and extend its benefits to an open finance scheme.�Additionally, the DUA Bill proposes changes to the UK GDPR and PECR (the latter governing direct marketing and the use of cookies and similar technology), including the introduction of a new lawful ground of “recognised legitimate interests,” the removal of consent requirements for non-intrusive cookies, the widening of grounds for solely automated decisions, the simplification of scientific research provisions, clarifications on dealing with subject access requests, changes to rules on data exports, and changes to the structure of the Information Commissioner’s Office (ICO).
So what’s next for the DUA Bill? While the commencement is typically 2 months after Royal Assent for Bills, the DUA Bill will take longer. Detailed discussions on secondary legislation will be necessary. Within the first two months, only minor clarifications will be made; however, substantive changes to data protection provisions and ICO governance are expected to take 6 to 12 months. Meanwhile, the European Commission is in the process of evaluating the adequacy of the new data protection regime in the UK to decide if it will continue to provide adequate protection for data flowing from the EU to the UK without additional regulatory protections being required. Businesses and stakeholders should prepare for the upcoming changes and stay informed about the progress of the DUA Bill as it moves towards implementation.
Please get in touch with me (Sheilah) or Victoria Ferguson if you’d like any more information.
Sheilah MackieFCA to launch Supercharged AI sandbox
The FCA is launching a new, “supercharged” sandbox to give firms greater opportunity to experiment with AI. Its initiative that uses NVIDIA accelerated computing and enterprise software is open to all firms...
FCA and ICO outline work on accelerating innovation
The FCA has outlined how it is working with the ICO to help firms use AI responsibly, while protecting consumers and encouraging innovation. The FCA and ICO see regulation as “a bridge, not a barrier”, and...
FCA tests AI large language models on consumer guidance
The FCA has published a research note�on the effectiveness of large language models (LLMs) like OpenAI’s GPT series in consumer-facing financial services.
The research conducted two pilot projects: asking GPT models to generate simplified definitions of complex financial terms, tailored to specific reading ages and supported by examples; and comparing the effectiveness of consumer guidance on cash savings queries generated by LLMs with responses under a traditional website FAQ format.
The key findings were as follows:
While LLMs have strong potential to simplify complex information, enhance readability and accessibility, validating their outputs requires a robust evaluation framework that combines human judgment with automation.
LLM effectiveness is dependent on context – outcomes like user comprehension and engagement were influenced by how the model was embedded within the customer journey, including design and delivery.
There is a strong appetite for AI-drive assistance, with many users responding positively to automated support.
The FCA has also published an engagement paper which outlines proposals for live AI model testing pilots.
LSB finds financial services chatbots do not meet customer needs
The LSB has published new research which found significant inconsistencies with customers’ experiences with financial services provider ‘webchat’ services, including considerably differences in functions supported by AI...
FCA consults on stablecoins and prudential regulation of crypto firms
The FCA has published 2 consultation papers to take the next steps towards regulation of the crypto markets. the paper on stablecoin issuance and cryptoasset custody covers: requirements that issuers of qualifying...
FCA publishes 2024 Financial Lives survey
The FCA has published findings from its 2024 Financial Lives survey. Key findings from the latest report include: 1 in 10 people have no cash savings at all, and another 21% have less than £1,000 to draw on in an...
FCA appoints payments and digital finance director
The FCA has appointed David Geale as the permanent executive director for payments and digital finance, and managing director of the PSR (while it remains in place). He will also: be responsible for helping to deliver...
BoE speaks on digitalisation
Sarah Breedon has spoken on the importance of interoperability in an increasingly digitalised environment. She said the BoE is aware that developments in digital money and assets risk new systems emerging in what she...
Chancellor heralds Financial Services Growth and Competitiveness Strategy
Rachel Reeves, speaking at the Innovate Finance Global Summit, at which the FCA also launched its latest plans to support firms’ use of AI, announced the forthcoming first UK Financial Services Growth and...
FCA asks for views on live AI testing plans
The FCA is asking for views on AI Live Testing which it plans to launch as part of its AI Lab, to support firms’ safe and responsible deployment of AI. Its Engagement Paper asks particularly for views on: the...
FCA speaks on digital asset regulation
Jessica Rusu – FCA Chief Data, Information and Intelligence Officer – has delivered a speech on global responses to digital asset regulation at TheCityUK International Conference 2025. Rusu highlighted the...
FCA publishes AI sprint summary
The FCA has published a summary of the AI sprint it held in January, which had 115 participants. 4 common themes came out of the event: that firms need clarity from the FCA on how regulatory frameworks apply to AI; the...
UK Finance feeds back on use of AI
UK Finance has responded to the Treasury Committee call for evidence on use of AI in financial services. The response highlights: that adoption of AI varies significantly across financial services, but most...
TheCityUK publishes response to call for evidence on AI
TheCityUK has published a response to HM Treasury’s call for evidence on AI in financial services. The industry-led body supports the aim of the inquiry and the Treasury Committee’s work on ensuring the UK...
FCA updates Regulatory Initiatives Grid
The updated Regulatory Initiatives Grid highlights many initiatives for various regulators relevant to the financial markets, including: during 2025: further action plan on FCA requirements in light of Consumer Duty...
FCA publishes multi-firm review of trading apps
The FCA has published a multi-firm review assessing the business models, products and services of trading app firms. The review aims to support new firms and traditional investment brokers seeking to offer such...
BoE publishes digital pound report and design note
The BoE has published an experiment report on whether it is feasible to implement an offline payment functionality for a digital pound. The report concluded that while it might be technically possible to introduce such...
FPC looks at role and risks of AI
As part of its “Financial Stability in Focus” work, the FPC has published a paper looking at how the rapid pace of development in firms’ use of AI can cause uncertainties and how these may translate...
FCA publishes work programme 2025-6
The FCA has published its work programme for 2025-26, which builds on the 4 priority areas in its 5 year plan. Specific initiatives additional to those set out in the 5 year plan (which we summarised in this article)...
BoE speech on innovation in wholesale payments
The BoE’s Executive Director of Payments, Victoria Cleland, has given a speech at the Pay360 event highlighting the Bank’s recent efforts to further innovation in the wholesale payments field. In particular...
Stephen WilsonFCA publishes 5 year strategy
The FCA has launched its much-trailed 5 year strategy. It will focus on 4 priorities: being a smarter regulator; supporting sustained economic growth; helping consumers to navigate their financial lives; and fighting...
Government launches procurement process for pilot Digital Gilt Instrument issuance
The Chancellor has published details of the launch of the procurement process for the pilot Digital Gilt Instrument (DIGIT) issuance, which was announced in the November 2024 Mansion House speech. The Government hopes...
Chancellor to streamline fintech regulation
The Chancellor has hosted senior representatives from the fintech sector to discuss new draft legislation which will streamline how the area is regulated. The new legislation will reform the framework under MiFID...
Chancellor unveils more red tape cutting
The Chancellor has unveiled more detail of the plans to cut the administrative cost of regulation on business, at a meeting attended by, among others, the PRA, FCA and ICO. The plans are wide ranging across all areas of...
FCA and ICO to host roundtable on opportunities for AI deployment in financial services
The FCA and ICO have written a joint letter on supporting AI, innovation and growth in the financial services industry. The regulators acknowledge the importance of regulatory certainty around the use of technologies...
Artis Finance becomes latest non-bank lender to enter administration
Artis Finance Limited has become the latest non-bank trade finance outfit to enter administration. James Cameron, Tom Crookham and Edward Macnamara of PwC were appointed joint administrators of the London finance...
Amy GallimoreWBD lawyers explore AI uses, risks and development
Our UK and US teams attended a panel discussion in Copenhagen last week on AI’s legal risks and ethical adoption. ⚠️ We explored the three key legal risks presented by AI: regulatory, contractual and IP. In short...
Katie SimmondsWolfsberg Group publishes digital asset FAQs
The Wolfsberg Group has published a set of FAQs on how members conceive of and conceptualise key terms associated with digital assets. It says the guide will be a reference point for its future work on the risks of and...
FCA and PSR report on use and impact of digital wallets
The FCA and PSR have published a report looking at the use and impact of digital wallets. Use of digital wallets is increasing rapidly, going from 8% in 2019 to 29% in 2023, and in 2023 around 20% of card users used a...
Stenn fintech collapse – what’s happened so far
Recent updates from Stenn’s administrators have cast light on the hasty demise of the London-based fintech business, which continues to generate considerable interest. Kristina Kicks, Joshua Dwyer and James Tucker...
FCA updates crypto-registration stats
The FCA received 2 new applications from crypto firms for registration under the MLRs in the past month. It also registered one firm, bringing the total registered since January 2020 to 50 – still only 14% of...
FCA proposes changes to listing and public offer rules
The FCA has issued two consultation papers proposing changes to the listing and public offer rules. The first paper sets out changes intended to align disclosure requirements for low denomination bonds with those for...
HM Treasury launches call for evidence on AI in financial services
The Treasury Committee has launched a new inquiry into the potential impacts of increased use of AI in banking, pensions and other financial services. It is seeking evidence on how financial services can utilise AI...
UK Finance publishes generative AI use report
UK Finance and Accenture have published a report on how financial services firms are using generative AI. The report finds that the sector is investing more in AI, and that generative AI is driving the most value in:...
Report on consumer-facing AI in financial services
The Global Financial Innovation Network has published a report on the use of consumer-facing AI in global financial services. The GFIN, spearheaded by the FCA and the Dubai FSA, carried out a study during 2024 on...
Government responds on governance of AI
The Government response to recommendations of a commons committee on governance of AI agrees that AI-specific legislation is needed and that it will consult on legislation that will apply to the still small number of...
BoE updates on digital pound
The BoE has published a report setting out the work it has done in the last year on the digital pound and the evolving payments landscape. The regulator has been working with HMT to explore the possibility of a digital...
FCA looks at bias in natural language processing
The FCA has published a research note that looks at bias in the specific context of word embeddings. Word embeddings are used by many natural language processing applications and as an alternative to large language...
FCA seeks comments on cryptoasset market abuse and admission and disclosure regimes
The FCA is seeking comments on its approach to cryptoasset Admissions and Disclosures, and the Market Abuse Regime for cryptoassets (MARC). In November 2024, the government confirmed it will proceed with legislation to...
FCA conducts literature review on bias in supervised machine learning
The FCA has published a literature review on bias in supervised machine learning. It is the first of a series of planned research notes on bias in AI. The research note found: The main potential source of bias was data...
FCA updates perimeter report
The FCA has updated its Perimeter Report. The report highlights the FCA’s remit and powers, including the new Designated Activities Regime, and then lists the key areas of harm linked to the perimeter and some key...
FCA updates on crypto regulation approach
The FCA has updated on its approach to crypto regulation in the UK, including an indicative roadmap of key dates and a series of focused consultations. Recent research from the FCA found that approximately 1/3 of people...
FCA publishes research on crypto ownership
The latest FCA research on consumer attitudes and behaviours toward cryptoassets, 12% of UK adults now own crypto, up from 10% in previous findings. Other key findings included: Awareness of crypto rose from 91 to 93%...
Government updates on digital asset regulation
Tulip Siddiq, Economic Secretary, speaking at the Tokenisation Summit, outlined the government’s approach to DLT and its potential to revolutionise traditional markets. She noted that the Digital Securities...
BoE and FCA report on AI in financial services
The BoE and FCA have published a report on their third survey of AI and machine learning in UK financial services. Use and adoption The regulators found that 75% of firms already use AI, with a further 10% planning to...
FCA reacts to Mansion House speech
The FCA has reacted to several announcements from the Mansion House speech. It has reiterated that it is committed to supporting growth and says it has fully embraced its secondary international competitiveness and...
Mansion House speech heralds 5 priority growth areas
The Chancellor’s first Mansion House speech stressed the importance of the financial services industry to the UK and highlighted 5 priority growth opportunities on which the Government will focus its strategy:...
PSR writes to tech firms on fraud enabler data
The PSR has written to online, social media and tech firms, telling them of its upcoming report on firms which are most commonly reported as enabling contact between fraudsters and victims. The letter to the relevant...
BoE speaks on AI and financial stability
Sarah Breedon spoke at a conference on the opportunities and challenges of emerging technologies in the financial ecosytem. She delved into the novel features of Generative AI and what it might mean for financial...
FCA welcomes Project Guardian tokenisation report
The FCA has welcomed the report on tokenisation in the asset management sector, published by “Project Guardian”, an international collaboration of industry and regulators led by the MAS. The report sets out...
FCA speaks on private market growth.. and motor finance
Nikhil Rathi, speaking at the Investment Association, spoke of the growth of private markets and the FCA’s support for initiatives that get companies the best options for financing. In an interesting segue, he...
G7 Cyber Expert Group publishes guidance on combatting quantum computing risks in the financial sector
The G7 Cyber Expert Group (CEG) has published a statement highlighting potential cybersecurity risks arising from developments in quantum computing, and how these may be addressed by the financial sector. The CEG...
FCA celebrates 10 years of innovation
Jessica Ruso has spoken at the FCA Innovation 10th anniversary event, looking back at the FCA’s innovative initiatives over the past 10 years and forward to the future. The event marks 10 years of the regulatory...
UK-Switzerland financial dialogue discusses AI
The first formal meeting of the UK-Switzerland Financial Dialogue since the conclusion of the Berne Agreement took place on 15 October. Among the topics discussed were: domestic implementation of the Berne agreement...
FCA and BoE publish digital securities sandbox policy statement
Following a joint consultation on creating a Digital Securities Sandbox (DSS), the FCA and BoE have published a policy statement setting out their approach to safely adopting new technologies in the operation of...
FCA Practitioner Panel responds to call for information on digital wallets
The FCA Practitioner Panel has published its response to the PSR and FCA’s call for information on the benefits and risks of digital wallets. The Panel noted some “clear and compelling” benefits of...
What developments are we seeing globally in the AI space?
🚀 The UK’s pro-innovation approach The UK’s Communications and Digital Lords Select Committee has launched an inquiry into AI and creative tech, aimed at scaling businesses. This aligns with the UK’s...
Digital Assets Bill gets first reading and Government responds to Law Commission recommendations
The Property (Digital Assets etc) Bill had its first reading in the House of Lords on 11 September. The Bill provides that digital assets can be considered to be personal property, and may therefore be given the same...
AI in the retail sector
Listen to some of our employment partners talking about the use of AI and its impact on staffing.
Law Commission publishes draft “third category” proposals
The Law Commission has published a supplemental report on digital assets as personal property, and a draft Bill to confirm the existence of a third category of personal property into which certain digital and other...
Bank of England outlines approach to innovation in money and payments
The Bank of England (BoE) has issued a discussion paper inviting views on its approach to innovation in money and payments. In the paper, the BoE notes that to date it has: enhanced its capability to supply wholesale...
FCA reports on secondary objective progress
The FCA has published the required metrics on the success of its secondary international competitiveness and growth objective. It has split the metrics into the themes of: authorisations and operational efficiency:...
PSR and FCA call for information on big tech and digital wallets
The PSR and FCA are seeking information and evidence on the benefits and risks posed by digital wallets to people and businesses. In particular, the regulators want to gather information on: the different benefits that...
Harry WellsFCA keeping trading apps under review
The FCA has carried out an online experiment involving over 9,000 consumers, involving a trading platform app that the FCA created. It wanted to test the effect of different digital engagement practices on trading...
Labour manifesto proposes Regulatory Innovation Office
Part of Labour’s manifesto proposes a new Regulatory Innovation Office, which will bring together existing functions to help regulators better deal with the development of new technologies, specifically AI. It...
Conservative manifesto highlights fintechs
The Conservative Manifesto, published on 11 June, contains few surprises for financial regulation. It priorities: building on the various co-operation agreements it has already signed, including with the EU and...
City of London Corporation looks at AI and the workforce
The City of London Corporation and KPMG have published a report looking at the expected increases in demand for and productivity resulting from the use of AI in financial and professional services. The report says there...
FCA speaks on investment management
Nikhil Rathi has spoken on the importance of the UK keeping its leading position in global asset management. He discussed current international initiatives such as: liquidity risk management, particularly for open ended...
July 4 Election: effect on current Bills?
A general election has been called for 4 July 2024. Parliament (including the House of Lords) will be dissolved on 30 May 2024. We are now therefore in the ‘wash-up’ period which will last for only 2 days...
BoE speech: balancing the opportunities and risks of AI
Randall Kroszner, BoE external member of the Financial Policy Committee, has delivered a speech on balancing the productivity opportunities of financial technology and AI against the potential risks. Speaking at the...
BoE publishes digital pound proof of concept
The BoE is currently conducting experiments and proofs of concept as part of the design phase towards a possible digital pound. It has looked at the technical feasibility of using existing POS hardware to initiate...
UK and Singapore strengthen FinTech and sustainable finance cooperation
The 9th dialogue of the UK-Singapore financial dialogue focussed on: commitment to scale financing in support of the net zero agenda, including transition planning and disclosure and rating standards; fintech and...
BoE looks at AI and financial stability
Jonathan Hall of the FPC has spoken on whether increasing use of AI models could have a negative impact on financial stability. He sees two key risks: that deep trading agents could lead to a brittle and highly...
Banking and financial services included in key Smart Data sectors
The Department for Business and Trade has published the Smart Data Roadmap to outline the action it is planning to take in 2024 to 2025 using the provisions of the Data Protection and Digital Information Bill on Smart...
BoE/PRA update on AI approach
The BoE and the PRA have responded to requests for an update on the strategic approach they are taking to AI. The response notes that AI and Machine Learning is already in quite wide use in many parts of the financial...
Innovate Finance and City of London publish report on compliance technology
Innovate Finance and the City of London Corporation have published a report calling for the FCA and PRA to introduce a test to help assess they ways in which technology can facilitate regulatory compliance. It says it...
FCA updates perimeter report
The FCA has updated its Perimeter Report on its website. It was last updated in March 2023. Among the issues discussed are: FCA’s general approach to the perimeter; when it will take action against unauthorised...
FCA and BoE consult on Digital Securities Sandbox
The BoE and FCA are consulting on the Digital Securities Sandbox which will allow participants to use developing technologies to carry out some of the traditional activities of CSDs and trading venues. Instruments such...
Fund tokenisation report looks at further token use in MMFs
The second report of the Technology Working Group on fund tokenisation looks at the potential use of tokens as collateral for money market funds, and how tokenised funds can plan a key role in an “on chain”...
FCA updates social media guidance
The FCA has published its updated guidance on social media advertising. The guidance applies equally to firms and promotors, including influencers. It does not contain any new obligations, but is a reminder of...
FCA publishes Business Plan 2024/2025
The FCA’s 2024/25 Business Plan highlights the work carried out to date, and what it plans to do in the coming year, the final year of its 3 year strategy. The strategy continues a focus on delivery of the...
AI in financial services: gathering speed
Read our article on the latest reports on use of AI in financial services and the potential benefits of generative AI.
Lloyd’s report: generative AI and cyber risk
Lloyd’s has published a report on how the growth of generative AI could impact upon cyber risk. Whilst the report recognises the benefits generative AI can bring, it highlights that generative AI tools pose an...
BoE speech: data and analytics strategy refresh
James Benford, BoE Executive Director for Data and Analytics Transformation and Chief Data Officer, has delivered a speech on BoE’s new Bank-wide approach to data and analytics strategy at Tech Show London. The...
FATF consults on payments transparency recommendations
The Financial Action Taskforce (FATF) has published a consultation, and explanatory memorandum, on proposed changes to its recommendation 16 (the Recommendation) and the associated interpretive note and glossary terms. ...
ABI publishes guide on using AI responsibly
The ABI has published a guide on the responsible use of AI which sets out how firms in the insurance sector can put the Government’s five principles of AI into practice. As a reminder, these are accountability...
Government defends Edinburgh Reform progress
The Government has responded to criticism from the Treasury Committee on how the Edinburgh Reforms are progressing. Following the Government’s report in December (a year after it announced the reforms) that it had...
Government requests AI update from regulators
Following its response to the Government’s AI White Paper consultation, the Department for Science, Innovation and Technology has asked the FCA and BoE to publish information outlining their strategic approach to...
FCA welcomes call for input on ‘Big Tech’ competition issues
FCA has issued a letter welcoming the Competition Division’s call for input on the potential competition impacts from data asymmetry between Big Tech and firms in financial services. In particular, FCA notes that...
UK Finance responds on stablecoins
UK Finance has responded to the FCA and BoE discussion papers on regulating stablecoins. It is generally supportive of the broad proposal to build upon the existing regulatory/legislative regime for stablecoins used for...
FIN. TeamBoE extends stablecoin consultation deadline
The BoE is keen to receive a wide range of feedback in response to its discussion paper on regulating stablecoins. It has therefore extended the consultation period which will now close at 10am on 12 February 2024. As a...
FCA publishes blockchain research
FCA has published a research note entitled ‘Review of Maximal Extractable value (MEV) and Blockchain Oracles’ in collaboration with Futuresight Business Intelligence Ltd, the Financial Industry Regulatory...