Chief Executive of the Financial Conduct Authority (FCA), Nikhil Rathi [pictured], has outlined the UK’s emerging regulatory approach to Big Tech and Artificial Intelligence at an industry conference .”We welcome the government’s call for the UK to be the global hub of AI regulation and will open our AI sandbox to firms wanting to test the latest innovations,” Rathi said.
Rathii said that the FCA is scrutinising the role of Big Tech companies as gatekeepers of data in financial services: “Today [July 12th], we published our feedback statement on Big Tech in Financial Services,” he said: ”We have announced a call for further input on the role of Big Tech firms as gatekeepers of data and the implications of the ensuing data-sharing asymmetry between Big Tech firms and financial services firms.”
The FCA is also planning to regulate firms designated as critical third parties, Rathi explained: “Together with the Bank of England and PRA (Prudential Regulation Authority), we will therefore be regulating these critical third parties – setting standards for their services – including AI services – to the UK financial sector. That also means making sure they meet those standards and ensuring resilience.”
Rathi also commented on the FCA’s approach to the use of AI across the financial sector: “Our outcomes-based approach not only serves to protect but also to encourage beneficial innovation,” he said. “International and industry collaboration is key on this issue, and we stand ready to lead and help make the UK the global home of AI regulation and safety.”
Full speech available here.
[Image Source: Financial Conduct Authority]
