2 posts tagged with "FCA"

The UK made a deliberate choice not to copy the EU AI Act. After Brexit, the government opted for a cross-regulator, sector-specific, principles-based approach to AI regulation — lighter-touch by design, aiming to position the UK as a pro-innovation AI jurisdiction.

In practice, "lighter-touch" doesn't mean "ungoverned." It means the rules live inside sector regulators — the FCA, ICO, PRA, CMA — rather than in a single prescriptive statute. For AI teams building products for the UK market, understanding this distributed regulatory structure is essential.

MiFID II Article 17 was written specifically for algorithmic trading. It predates large language models, but its requirements translate directly to AI trading agents: you need a kill switch, an algo register, annual conformity testing, and an audit trail that covers every order generated by the algorithm.

The FCA's equivalent rules in the UK (post-Brexit) mirror MiFID II Article 17 almost exactly. If you operate in both jurisdictions, you're dealing with two regulators but essentially the same requirements.