Regulations

Story: FCA Chief Rathi Warns AI Is Breaking the Rules 80% of Firms Already Use

By Steven Anderson

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What Rathi Actually Said. When Rathi joined the FCA, he pushed technology and data regulation to sit alongside traditional…

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Regulations Built on Old Assumptions. Rathi was direct about where the friction is. The assumptions baked into current market…

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No Clear Path Yet — And Rathi Knows It. The FCA isn't rolling out a finished framework. That's worth being honest about.

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Nikhil Rathi said it plainly. The Financial Conduct Authority needs to rethink how it regulates financial services — because AI is moving faster than the rulebook can keep up.

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Rathi, the FCA's chief executive, made the remarks at techUK's Agents of Change event in 2026.

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When Rathi joined the FCA, he pushed technology and data regulation to sit alongside traditional financial oversight — not as an afterthought, but as a core function.

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That's a bigger claim than it sounds. He's not just talking about chatbots or fraud detection algorithms.

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Rathi was direct about where the friction is. The assumptions baked into current market regulations — about how quickly things move, about where risks concentrate, about what…

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And it's not just speed. It's the nature of the change. AI doesn't just accelerate existing processes. It reshapes them.

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More context: CFTC Sues 9 States Over Prediction Markets, Kentucky Latest Target

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So the FCA is doing something regulators don't love to admit: it's reconsidering the foundations.

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Maintaining trust is the core of it. That's the word Rathi kept coming back to — trust. Trust in the financial system, trust in market integrity, trust that competition is real…

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The FCA isn't rolling out a finished framework. That's worth being honest about. Rathi's remarks at the techUK event were more diagnostic than prescriptive.

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It's unclear yet what that engagement produces in concrete regulatory terms. No specific rules were announced. No hard deadlines.

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That's genuinely hard to do. Industry moves on commercial timelines. Regulators move on political and procedural ones.

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