Context
The FCA has set out plans for using AI to speed up authorisations, testing new tools to identify key risks earlier, with people remaining at the heart of decision making.
Key points to note and next actions
The new authorisation tool is being developed internally and will be integrated into existing FCA systems, forming part of the FCA’s annual work programme 2026/27, which lays out the FCA’s ambition to be a smarter, more data-driven regulator. The FCA will also use generative AI to modernise regulation, streamline supervision and improve firms’ experience, by reducing unnecessary administrative burdens. The programme outlines initiatives to simplify processes and help firms operate more efficiently, while ensuring high standards are maintained across the financial sector:
- Integrating AI into regulatory workflows – enabling the FCA to detect harm more effectively and speed up regulatory decision-making.
- Using generative AI to review documents received from firms – supporting faster decisions. Following successful testing, it will be rolled out across authorisations and supervision.
- Using a new sandbox environment to test automated data feeds between the FCA and firms – reducing manual effort and improving the timeliness and reliability of intelligence.
- Investing in smarter case handling – using analytics and digital tools to quickly identify the greatest sources of harm and triage intelligence more efficiently.
- Expanding the Supercharged Sandbox – opening to a new cohort of firms and giving them access to high-quality synthetic data so innovative, AI-driven financial products can be safely tested.
- Reducing burdens on firms – removing 3 more regular data returns, reducing the frequency of another, and moving more regulatory tasks onto My FCA, so firms can manage everything in one place.
- Improving firms’ experience of regulation – with faster authorisation timelines, simplified digital forms, and a new scorecard to better understand and respond to what firms need.
- The FCA also continues to support economic growth and help consumers navigate their financial lives and fight financial crime by: Unlocking capital investment and liquidity across UK markets; expanding its overseas presence – to the United Arab Emirates, China and India; beginning regulation of deferred payment credit (Buy Now Pay Later) and by creating a single, end-to-end, intelligence-led service – to spot and stop the highest harm financial promotions faster, at lower cost and in a more consistent way.
The FCA has also published a consultation on our fees and levies for the year ahead and its perimeter report for 2026/27, setting out the most significant issues at the edge of its remit, including where legislative change may be needed to better protect consumers, markets and support sustained economic growth.