19 October 2026
If you are covering the FCA's latest report 'AI in financial services: good practice and areas for improvement', and accompanying speech, in which the FCA calls "on AI providers to help consumers understand the limits of financial information and advice generated by their models through clear, proportionate and consistent disclaimers", please see the below comment from Sam Christopher, proposition director at Quilter:
“The FCA’s decision to call directly on AI providers to help consumers understand the limits of financial information and advice generated by their models is a significant and welcome step. General-purpose AI is increasingly influencing financial decisions before someone ever reaches a regulated firm, so consumers need clarity about what these tools are providing and what protections they have.
“The scale of this challenge is already significant as the FCA says four in five less-experienced investors aged 18 to 40 have used AI to help with investing, yet only 40% of consumers correctly recognise that there is no recourse if something goes wrong after acting on advice from a general-purpose AI tool. Our own research tells a similar story, with 67% of non-advised consumers comfortable using AI for at least one financial task, 40% willing to use it to understand tax rules and almost a quarter to recommend investments.
“It is important, however, that the response does not become overly prescriptive while the technology and our understanding of it are developing so quickly. The FCA is right to put consumer protection at the heart of its approach while giving firms room to innovate, test and learn. Regulation needs to be able to evolve alongside the technology rather than trying to anticipate every possible use case today.
“That balance is particularly important for vulnerable customers. AI is rightly associated with risks, particularly where people rely on unregulated tools, but responsible adoption by regulated firms can also improve outcomes. It can help identify where additional support might be needed, make complex financial information easier to understand and free advisers from routine administration so they can spend more time supporting clients.
“Ultimately, there is a considerable opportunity here. AI can improve engagement, increase adviser capacity and help more people access financial support, meaning it should be part of the solution to the advice gap. The industry needs to work closely with the FCA as we learn more about the opportunities and risks, remaining nimble enough to innovate while ensuring customers are protected from harm.”
