UK review urges stronger FCA powers over AI in finance

The Guardian reports that a major FCA review led by Sheldon Mills is urging the UK government to strengthen the City regulator's authority as AI moves deeper into financial services. The review says AI could make advice and services more accessible, but also amplify fraud, cyber threats, consumer harm, and digital-market concentration. It recommends giving the FCA more power over critical technology providers, including AI firms and cloud providers, while also using AI internally for supervision.

Key details: The review focuses on how AI could reshape retail financial services by 2030, It warns that AI-enabled finance can increase fraud, cyber, consumer-harm, and monopoly risks, Recommendations include stronger FCA powers over critical technology providers.

Why it matters: AI governance is moving from abstract model rules into sector regulators that can directly shape finance, fraud controls, and cloud-provider oversight.