World January 27, 2026

UK’s Financial Regulator Opens Review of Advanced AI Effects on Retail Markets

FCA to examine competition, market structure and consumer impacts as AI and digital finance evolve; no AI-specific rules planned

By Ajmal Hussain
UK’s Financial Regulator Opens Review of Advanced AI Effects on Retail Markets

The UK Financial Conduct Authority has initiated a formal review into how advanced artificial intelligence could reshape retail financial markets and affect consumers. Led by FCA Executive Director Sheldon Mills, the review will probe potential changes to competition and market structure as AI technologies develop, and will consider these shifts alongside the rising use of digital finance tools. Findings are due to be presented to the FCA board in mid-2026. The regulator has stated it does not intend to introduce AI-specific regulations at this time.

Key Points

  • The FCA has launched a review led by Executive Director Sheldon Mills to evaluate how advanced AI could affect competition and market structure in retail financial markets.
  • The review will also examine the impact of AI on consumers and is scheduled to report findings to the FCA board in mid-2026.
  • The regulator stated it does not plan to introduce rules specific to AI, and it will consider AI developments alongside growth in digital finance sectors such as blockchain, smart contracts, tokenization and digital assets.

The Financial Conduct Authority (FCA) announced on Tuesday that it has launched a review to assess how advanced artificial intelligence may influence retail financial markets and the consumers who use them. The review will be overseen by FCA Executive Director Sheldon Mills.

According to the announcement, the review will investigate whether the emergence and adoption of advanced AI technologies could alter competition dynamics and market structure within retail finance. It will also examine the direct and indirect effects on consumers as AI capabilities evolve.

The FCA said the results of the review are expected to be presented to its board in mid-2026. The regulator underscored that it does not plan to create rules that are solely targeted at AI.

In outlining the scope of the review, Sheldon Mills said: "As I begin this review, the technological landscape is evolving at a remarkable pace. It is entirely plausible that we will see widespread use of agentic AI systems, neuromorphic computing and quantum capability."

Mills added that these technological developments are likely to occur alongside the continued expansion of digital finance, explicitly citing blockchain and smart contracts, tokenization and digital assets as part of that growth.


The review is framed to capture both competitive and consumer dimensions as new computational architectures and AI models progress. By placing the findings on the FCA board's agenda for mid-2026, the regulator has signaled a timeline for internal consideration while clarifying that, for now, it does not intend to impose AI-specific rules.

While the announcement focuses on the review's remit and timeline, it does not provide additional procedural details or intermediate milestones. It also does not set out potential regulatory actions beyond the stated intention not to introduce AI-specific regulations at this stage.

Risks

  • Uncertainty about how AI-driven technologies may change competition and market structure in retail financial markets - this affects financial institutions, fintech firms and market participants.
  • Uncertain consumer impacts from advanced AI adoption in retail finance - this affects retail investors and consumers of financial services.
  • Timing and outcomes of the review remain unknown until findings are presented to the FCA board in mid-2026 - this creates near-term uncertainty for firms planning product launches or strategic changes tied to AI and digital finance.

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