Regulatory Wrap episode 85: Is the FCA moving fast enough on AI regulation? 

In Regulatory Wrap for the week to July 24, 2026:

In this week’s Regulatory Wrap, we discuss the “Mills Review” publication by Sheldon Mills, Executive Director at the FCA, on how the regulator can responsibly govern AI while supporting competition, and how it can leverage AI’s risk monitoring abilities to keep pace with the changes emerging technology is introducing to the financial industry.

Highlights:

1. The FCA has released the Mills Review, which includes insights from Executive Director Sheldon Mills on how AI can shape the industry in the coming years and recommendations on how the FCA can respond
2. One of Mills’ recommendations was for U.K. authorities to reassess whether the use of GenAI tools such as ChatGPT or Claude should be subject to regulatory rules
3. Mills also recommended that regulators embrace AI’s ability to “monitor, detect, and tackle” risks to help keep pace with the fast-evolving industry
4. Mills flagged several other considerations, such as the need for a human to be accountable for reviewing AI-related decisions, the potential for AI to amplify threats, and whether the FCA’s authority under the critical third parties regime should expand to big tech providers
5. While the Mills Review is a sign that regulators are beginning to contemplate their approach to enforcing AI regulations, the question remains whether they are keeping up with the speed at which the industry is changing

This week’s Regulatory Wrap is brought to you by Global Relay’s Senior Content Writer, Jay Hampshire.  

Our 2026 Industry Insights report found that 45% of respondents believe we need more specific AI regulation, while 41% believe we need regulators to clarify existing expectations. The FCA may be responding to firms’ request for regulatory clarity on AI, though will its pace match industry needs?

Kathryn Fallah

2 mins read • 24 July 2026