The Financial Conduct Authority (FCA ) is introducing new
regulatory measures to support innovation in financial services. The changes
are part of an effort to attract international firms and maintain the country’s
global position in key financial markets.
Jessica Rusu, Chief Data, Information and Intelligence
Officer at the FCA, spoke about the new
initiatives at the Innovate Finance Global Summit 2025. She said the UK
continues to lead in areas such as commercial insurance, derivatives, debt
issuance, commodities, and foreign exchange.
FCA Announces PASS and AI Live Testing
Rusu outlined several reforms aimed at supporting this
leadership. These include changes to the wholesale market structure and the
creation of a new platform to increase access to private market investments.
To assist firms considering entry into the UK market, the
FCA has launched a pre-application support service. Known as PASS, it is
designed for cryptoasset, payments, and wholesale firms. It allows companies to
engage with the regulator before submitting formal applications.
In line with its support for responsible technology use, the
FCA has also announced a new program called AI Live Testing. The initiative
allows companies to test generative AI tools under the supervision of the
regulator. The aim is to explore how such tools can be used in consumer-facing
services without breaching regulatory standards.
You may find it interesting at FinanceMagnates.com: FCA
Allows 16,000 Firms to Skip Three Data Collections; Do CFD Providers Benefit?
FCA launches live testing to encourage AI innovation https://t.co/j1o0LrZwvs
— FTAdviser (@FTAdviser) April 29, 2025
Sandboxes Expanded to Support Market Innovation
The FCA is also expanding its Regulatory Sandbox and Digital
Sandbox programs. These offer firms support during the authorisation process
and access to financial and market data. According to independent research,
participants in these programs are more likely to receive investment and
continue operations over time.
Rusu said, “Through these market changes, we know consumers
and industry look to regulators as a guardian of stability. Having a clear plan
for what we prioritise in turbulent times will help financial services, and
particularly those who want to innovate and grow their business.”
The Financial Conduct Authority (FCA ) is introducing new
regulatory measures to support innovation in financial services. The changes
are part of an effort to attract international firms and maintain the country’s
global position in key financial markets.
Jessica Rusu, Chief Data, Information and Intelligence
Officer at the FCA, spoke about the new
initiatives at the Innovate Finance Global Summit 2025. She said the UK
continues to lead in areas such as commercial insurance, derivatives, debt
issuance, commodities, and foreign exchange.
FCA Announces PASS and AI Live Testing
Rusu outlined several reforms aimed at supporting this
leadership. These include changes to the wholesale market structure and the
creation of a new platform to increase access to private market investments.
To assist firms considering entry into the UK market, the
FCA has launched a pre-application support service. Known as PASS, it is
designed for cryptoasset, payments, and wholesale firms. It allows companies to
engage with the regulator before submitting formal applications.
In line with its support for responsible technology use, the
FCA has also announced a new program called AI Live Testing. The initiative
allows companies to test generative AI tools under the supervision of the
regulator. The aim is to explore how such tools can be used in consumer-facing
services without breaching regulatory standards.
You may find it interesting at FinanceMagnates.com: FCA
Allows 16,000 Firms to Skip Three Data Collections; Do CFD Providers Benefit?
FCA launches live testing to encourage AI innovation https://t.co/j1o0LrZwvs
— FTAdviser (@FTAdviser) April 29, 2025
Sandboxes Expanded to Support Market Innovation
The FCA is also expanding its Regulatory Sandbox and Digital
Sandbox programs. These offer firms support during the authorisation process
and access to financial and market data. According to independent research,
participants in these programs are more likely to receive investment and
continue operations over time.
Rusu said, “Through these market changes, we know consumers
and industry look to regulators as a guardian of stability. Having a clear plan
for what we prioritise in turbulent times will help financial services, and
particularly those who want to innovate and grow their business.”
This post is originally published on FINANCEMAGNATES.
