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Would you allow AI to help choose your insurance or make financial decisions on your behalf? The level of consumer appetite may already be greater than many expected. Following publication of the FCA’s Mills Review, the regulator’s head of insurance market analysis and policy has reportedly expressed surprise at consumers’ willingness to use AI in financial purchasing decisions. The Review found that one in five UK adults is already open to AI making financial decisions for t

AI could fundamentally reshape financial services by 2030; but the technology may be only part of the challenge. Our analysis of the FCA’s newly published Mills Review highlights the growing importance of governance, accountability and oversight as artificial intelligence becomes more embedded in retail financial services. The Review considers a future in which AI increasingly influences how firms operate, how consumers make financial decisions and how financial products are

FCA Mills Review, published 6 July 2026. The review follows the FCA’s January 2026 call for input into the long-term impact of AI on retail financial services, looking towards 2030 and beyond. The FCA describes the review as examining how AI may reshape “consumers, firms, markets and regulators”. For Watchdog, the relevance is clear. AI is not just an efficiency story. It is becoming a monitoring, accountability and consumer-risk issue. Customer journeys, complaint ha

The FCA’s direction of travel is clear: earlier intervention, stronger deterrence, and greater focus on individual accountability. In its recent consultation on penalty and decision-making policies, the FCA is proposing targeted changes including: • raising the minimum penalty for the most serious individual market abuse cases from £100,000 to £150,000 • making clear that penalties for wealthier individuals may be increased for deterrent effect • clarifying how deferred bonus

The FCA’s Chief Executive, Nikhil Rathi, has warned that AI is moving faster than the law. That matters because this is not a general technology debate. It is coming directly from the head of the UK financial regulator, in the context of how artificial intelligence may affect financial services, consumers, markets and financial crime. The immediate issue is whether regulation can keep pace with rapidly developing AI tools. But the wider point is just as important. Financial s

Companies House accounts filing is changing — and better data matters From April 2028, Companies House accounts filing will become more digital, more structured and, in some areas, more detailed. The main change is that all companies will need to file accounts using commercial software, with accounts submitted digitally in iXBRL format. Small companies and micro-entities will also have to file profit and loss information, although they will be able to opt out of having that P

From April 2028, small companies and micro-entities will need to file profit and loss accounts with Companies House, although they will be able to opt out of having that P&L information published on the public register. The reform is intended to improve Companies House data, transparency and oversight, while addressing smaller firms’ concerns about commercial sensitivity. The change is part of wider Companies House reforms aimed at improving transparency, data quality and

The Financial Conduct Authority Chief Executive has published a speech this week titled “A reform-minded regulator”, setting out how it intends to adapt to a faster-moving market environment. The direction of travel is clear. The FCA is positioning itself to be more responsive, more flexible, and more aligned with UK growth while maintaining high standards. Key themes from the speech: Regulation must evolve alongside faster, more volatile markets A stronger focus on supportin

The National Law Review has highlighted recent FCA commentary on the future of the Senior Managers & Certification Regime. The FCA’s intention is to simplify the framework, reducing unnecessary complexity while maintaining clear accountability for senior managers. The direction of travel is towards a more proportionate regime, with less emphasis on process and documentation, and greater focus on practical oversight and responsibility. This reflects ongoing feedback that SM&CR

The FCA has just highlighted weaknesses in due diligence across firms in a recent supervisory review (via AML Intelligence). Not a data problem.An interpretation problem. Firms are still: Over-relying on automated tools Missing complex ownership structures Failing to challenge red flags Treating due diligence as a one-off check 👉 The FCA’s message is clear:Due diligence must be ongoing, connected, and judgement-led. That’s where most firms fall short. They have the data — bu

The UK is undergoing the biggest reform of Companies House in over 180 years, driven by the Economic Crime and Corporate Transparency Act. The aim is to transform Companies House from a passive register into an active gatekeeper for corporate data. Key changes include: • Identity verification for all company directors and persons with significant control to prevent fraudulent appointments. • Stronger powers for Companies House to query, reject or remove inaccurate filings.

FCA Launches Mills Review on AI Future On 27 January 2026, the Financial Conduct Authority (FCA) launched the Mills Review to explore the long-term impact of artificial intelligence (AI) on UK retail financial services, inviting industry and stakeholder input on how AI could reshape the sector by 2030 and beyond. The review, led by Sheldon Mills, seeks feedback across four key themes: Future evolution of AI technology – including autonomous, agentic and multimodal AI systems,

FCA Finalises Rules for New Advice Regime The Financial Conduct Authority (FCA) has finalised its new “targeted support” regime, designed to close the UK’s long-standing financial advice gap. The framework allows authorised firms to provide regulated recommendations to groups of consumers with shared characteristics, without carrying out a full individual suitability assessment. Targeted support sits between generic guidance and full personalised advice. The FCA’s aim is to m

FCA Modernises Authorisation Amid Growth Push The Financial Conduct Authority is modernising its authorisation process to better support innovation and growth across UK financial services, while maintaining robust regulatory standards. Speaking at its “Gateway to Growth” event, the FCA highlighted a clear shift in tone: authorisation should be seen as an enabler of growth, not just a regulatory hurdle. Key developments include: Faster and more predictable authorisation timeli

The FCA has significantly stepped up its crackdown on so-called finfluencers. New figures show enforcement action increased by 174 percent in 2025, with 74 interventions compared to 27 the previous year. The focus is on tackling misleading or unauthorised financial promotions across social media and other online platforms, as the regulator responds to growing consumer harm in the digital advice space. This sharp rise reflects a wider problem. A large volume of financial conte

FCA launches long-term review into AI and retail financial services The FCA has announced a forward-looking review into how artificial intelligence could reshape retail financial services over the next decade. The review will examine how rapidly advancing AI capabilities may affect consumer behaviour, market dynamics, competition, and the way firms design, distribute and monitor financial products. Importantly, the FCA has been clear that there is no immediate change to regul

FCA launches review as non-human intelligence could surpass human reasoning The FCA has launched a major forward-looking review into the impact of advanced artificial intelligence on retail financial services, looking out to 2030 and beyond. Led by Executive Director Sheldon Mills, the review will examine emerging technologies such as agentic AI, neuromorphic computing and the possibility of non-human intelligence exceeding human reasoning capabilities. Prompted by concerns f

FCA warnings on selling complex products The FCA has warned that a number of firms are not meeting expected standards when selling complex investment products to retail investors. Its review found weaknesses in how firms assess investor understanding, define target markets, and communicate risk. In particular, disclosures are often overly technical and fail to explain clearly how features such as leverage, volatility, or daily resets can impact outcomes. While some firms have

Summary — Regulatory Outlook for 2026 As we look ahead to 2026, the UK regulatory landscape is shaping up to be one of significant evolution and strategic change. The Financial Conduct Authority (FCA) is expected to continue focusing on consumer outcomes, leveraging existing frameworks like the Consumer Duty rather than introducing entirely new AI-specific rules — emphasising enforcement and good conduct over prescriptive regulation. Key themes advisers and firms should watch

The Financial Conduct Authority (FCA) has launched a pioneering “AI Live Testing” initiative — the first of its kind in the UK financial sector — giving select major firms a controlled environment to trial and refine responsible AI tools for real-world deployment. The goal: help firms navigate evaluation frameworks, ongoing monitoring, governance and risk management — enabling use cases such as debt-resolution, financial advice, customer engagement, complaints handling and