Sectors · Financial services & insurance broking

There are no new AI rules for financial services. The existing ones already apply.

The FCA has said it does not intend to introduce AI-specific rules. It expects firms to manage AI through the rules they already follow: Consumer Duty, SM&CR, and their existing governance and controls. Supervisors are now asking how.

What’s moving in 2026

Correct as at October 2026. We check the position before every engagement.

  1. Parliament pushes the regulators.

    The Treasury Committee criticised the regulators’ “wait and see” approach to AI in financial services.

  2. The FCA gathers examples.

    It reopened its AI Input Zone, and plans to publish a practical benchmark for its supervision of AI later this year.

  3. Suppliers come into view.

    A joint statement from the regulators named third parties and supply chains among the AI risks firms must manage.

What the existing rules ask of your AI

Each rule you already follow raises a specific question once AI is in the work. The engagement records the answer.

RuleThe question it raisesWhat we record
Consumer DutyWhere does AI shape a customer outcome, and does a person check it?Workflows that act without a person, and the customers they touch
SM&CRWhich senior manager is accountable for each AI-driven outcome?A named owner for every workflow
Systems and controlsIf an AI tool fails, can the work carry on?A manual fallback, and when it was last tested
Third partiesWhat have your AI suppliers committed to, and what happens if they change?Supplier due diligence and continuity
UK GDPRWhat client data goes into AI, and on what basis?The data classes at every step

Horizon scanning for financial services. Partners in this sector receive a quarterly intelligence pack: FCA and PRA developments, enforcement and what they mean for your record. Part of the monthly partnership →

For brokers

Your own AI use. Brokers sit squarely under Consumer Duty and SM&CR. If AI is in your placement notes, claims handling or client communications, the same questions apply to you.

Your clients’ AI use. Your commercial clients are adopting AI too, and their own clients and regulators will ask about it. A broker who can point them to a clear, evidenced answer strengthens the relationship and stands out.

Horizon scanning for insurance broking. Broker partners receive a quarterly intelligence pack for their sector: regulatory moves, developments in AI across broking, and what they mean for you and your clients. Part of the monthly partnership →

We work with brokers on a referral basis, with no commission in either direction, so the recommendation stays clean.

Begin with a single workflow.

60–90 minutes on one piece of your own work, free. You leave knowing where to look first.

Start with one workflow

60–90 minutes. No fee. No obligation.

Ignivara iQ does not certify compliance with these or any other rules.

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