The UK’s Financial Conduct Authority(FCA) and the Monetary Authority of Singapore (MAS) have announced a landmark collaboration to advance the safe and responsible use of artificial intelligence (AI) in financial services. The initiative, unveiled at the Singapore FinTech Festival, which ran from 12 to 14 November 2025, aims to encourage innovative firms in both countries to scale and operate across markets more effectively.
For the first time, the FCA will also establish a presence in Singapore with the appointment of an FCA Financial Services Attaché based at the British High Commission in Singapore. This is part of the FCA’s wider plan to strengthen its regulatory relationship with MAS and promote the UK as a global hub for financial services.
The collaboration between the FCA and MAS signals their commitment to understanding the current state-of-play of AI in financial services firms and establishing regulatory guardrails for responsible AI development. This builds on the FCA’s showcase day held on 28 January 2025, where innovative firms demonstrated AI-driven solutions spanning governance, data integration, and compliance practices at the FCA’s London offices.
Embracing the future impact of AI
We reflect on recent developments where the FCA is fostering a regulatory environment where AI is no longer treated as experimental. Instead, firms are expected to operationalise robust governance, evidence their AI decision‑making, and demonstrate that customer outcomes, market integrity and resilience remain central as AI systems scale in capability and autonomy.
As of January 2026, the FCA maintains that it does not plan to introduce AI-specific regulations and relies instead on current frameworks (such as the Consumer Duty and SM&CR Conduct Rules). Compared to other regulatory regimes, the FCA has opted for a flexible, lighter touch approach to embedding AI oversight into existing rules.
The Mills Review
The FCA has launched a strategic focus on AI, which culminated in the launch of the Mills Review in January 2026, a major forward-looking initiative examining how AI will reshape retail financial services by 2030 and beyond. The Mills Review reflects the FCA’s concerns around how AI will reshape competition dynamics and considers how non-financial services firms may be impacted by AI soon. It also signals an awareness of the growing risk of AI-enabled fraud and market manipulation that is becoming increasingly prevalent.
AI Live Testing programme
The FCA has opened applications for the second cohort of its AI Live Testing programme, with applications closing on 2 March 2026 and testing beginning in April. (Applications now open for next round of FCA’s AI Live Testing | FCA). The initiative provides firms with structured regulatory governance and risk‑management guidance for deploying AI safely.
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The content of this article is for general information only. It is not, and should not be taken as, legal advice. If you require any further information in relation to this article please contact the author in the first instance. Law covered as at April 2026.