UK Financial Conduct Authority calls for expanded powers to oversee AI risks in financial services
• The UK Treasury Select Committee is urging the Financial Conduct Authority (FCA) to expand its powers to better oversee AI risks within the financial services sector. • This call for action comes as over 75% of financial firms have already deployed AI, creating an urgent need for AI-specific stress testing and enhanced consumer protections. • The proposed framework is significant because it could establish a regulatory template for auditing AI-driven credit models and algorithmic trading systems.
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