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

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 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 FCA h as announced a major simplification of the complaints reporting process for regulated firms. From 2025, firms will no longer need to submit detailed twice-yearly complaint returns. Instead, the FCA will use smarter data collection and risk-based oversight to reduce the reporting burden—particularly for smaller firms—while still maintaining strong consumer protection standards. This is part of the FCA’s wider move to streamline regulatory processes, remove unnecessa