Coming as an addition to the FCA’s AI Lab, which has been assisting companies in developing and deploying AI, the new service is set to fill the testing gap, posing difficulties for firms adopting the technology. By utilising the testing service, companies could collaborate with the regulator while they verify that their new AI products are ready to be leveraged. At the same time, the solution is set to offer the FCA the intelligence to improve its understanding of how AI may impact UK financial markets.
The live testing service can provide regulatory support to companies that want to deploy consumer or market-facing AI models. The proposed solution would run for 12 to 18 months, with the FCA seeking to officially roll it out in September 2025.
Furthermore, the proposal assists the FCA’s new five-year strategy, which covers how the regulator intends to facilitate development by allowing innovation and ensuring the continued competitiveness of the UK’s financial services through a tech-focused approach. Additionally, the service centres on advancing the FCA’s position as a regulator that embraces data and technology to become more effective and efficient.
Besides rolling out the live AI testing service, the FCA introduced My FCA, a portal enabling firms to access a single point of sign-in for regulatory reporting tasks. The portal focused on helping registered and authorised firms to better fulfil regulatory responsibilities while augmenting users’ experience. Prior to this move, organisations were required to sign in to three different systems.
A few days before this, the FCA revealed its plans to launch a new authorisation regime for cryptocurrency firms, projected to take effect in 2026. The regulator sought to hold consultations with industry participants and develop additional rules before implementation. The framework was set to represent a shift from AML registration requirements by allowing cryptocurrency exchanges, stablecoin issuers, and other digital asset firms to obtain authorisation rather than just registering for AML compliance.
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