The UK Financial Conduct Authority is developing a new regulatory environment this year, but it will require a heavy workload as businesses begin to request authorisations. To lighten the load, they will soon expand their AI usage.
An Internal Project
The FCA’s recently released annual work programme explains that the FCA hopes to become a more data-driven and intelligent regulator. By streamlining supervision through AI, they hope to give applicants a simpler, less burdensome experience. To date, they’ve relied on analytics and digital tools to improve efficiency, but neither of these tools can detect harm as effectively as they’d like.
The Role of AI
The FCA will be designing its own AI tools in-house. It will support regulatory workflows, review documents, and make faster decisions. Manual work will be minimised, allowing the regulator to respond faster and more reliably. Analytics will still play a key role in day-to-day work, but AI-driven financial products will take over some of that workload.
Reducing Burdens
FCA compliance consultants such as //www.adempi.co.uk will be able to move through their authorisation timelines faster and more easily. The forms they’ll need to fill out will be streamlined and shortened to support a new era of service excellence. This will encourage liquidity in UK markets.
The new AI tool will automate much of the FCA’s work, allowing it to put an end to harm faster and more cheaply than ever before. In exchange for this new system, the regulator has increased its consultation fees by 0.7%. This will cover inflation and ongoing regulatory work.
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