Overview
- The FCA published the Mills Review on Monday, July 6, 2026, saying AI will transform retail financial services by 2030 while also amplifying risks such as fraud, cyber attacks, consumer harm and market concentration.
- The report cites widespread adoption by firms and consumers, reporting roughly 75–81% of firms use AI in operations and estimating about 11 million UK adults may use agentic AI for financial tasks by 2030.
- Sheldon Mills recommended the FCA consider within three to six months whether to 'secure and adapt' the regulatory perimeter to cover general‑purpose large language models that currently sit outside financial rules.
- The FCA plans to rely on a principles‑based rulebook reinforced with supervised testing tools such as an AI Lab, Supercharged Sandbox and AI live testing, while MPs on the Treasury Committee press for concrete AI guidance and stress tests by end‑2026.
- Regulators and central bankers warned that dependence on a small set of models and cloud providers creates correlated failure points and are exploring technical safeguards such as market circuit breakers or 'kill switches', a change that could reshape oversight of firms and third‑party AI vendors.