The Financial Conduct Authority has outlined plans to expand its use of artificial intelligence and data tools under its 2026/27 work programme, a move that could affect high-risk retail trading segments such as CFDs by enabling faster supervision.

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On fees, the FCA proposed a 1% increase in minimum and application fees, below inflation. The annual funding requirement will rise by 0.7%, the lowest in a decade, with headcount kept flat to manage costs.

The regulator said a new authorisation tool is being developed internally and will be integrated into existing systems, part of its broader push to become “a smarter, more data-driven regulator.”

Generative AI to Accelerate FCA Authorisations

The FCA said it will use generative AI to streamline supervision and reduce administrative burdens. The technology will review firm submissions and support faster decisions, with rollout planned across authorisations and supervision after testing.

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The programme also includes plans to integrate AI into workflows to detect harm earlier and improve case handling. A sandbox will test automated data feeds between firms and the regulator to improve the speed and reliability of information.

Sandbox Expansion and Reporting Changes

The FCA will expand its Supercharged Sandbox Sandbox A sandbox is a commonly deployed term in the fintech universe, referring to a mechanism for developing regulation that keeps up with the fast pace of innovation.In scope of the computer science world, a sandbox is also associated with a closed testing environment that designed for experimenting safely with web or software projects.Sandboxes are very important to the regulatory field, though is also utilized within the digital economy space.The first regulatory sandbox was launched in the United A sandbox is a commonly deployed term in the fintech universe, referring to a mechanism for developing regulation that keeps up with the fast pace of innovation.In scope of the computer science world, a sandbox is also associated with a closed testing environment that designed for experimenting safely with web or software projects.Sandboxes are very important to the regulatory field, though is also utilized within the digital economy space.The first regulatory sandbox was launched in the United Read this Term, allowing firms to test AI-driven products with synthetic data. Reporting requirements will be reduced by removing some data returns, and more processes will move onto the My FCA platform. The regulator also aims to speed up authorisations and simplify forms.

FCA Plans Global Presence, Market Reforms

The programme includes measures to support markets and consumers. These include consulting on pension charge caps, proposals to remove the seven-day IPO research waiting period, and plans to expand the FCA’s presence in the United Arab Emirates, China and India.

The regulator confirmed it will begin supervising Buy Now Pay Later from July, including affordability checks and authorisation reviews. In financial crime, it is developing a “single, end-to-end, intelligence-led service” to identify and stop harmful promotions more quickly.

Perimeter Report Flags AI, Prediction Market Risks

Nikhil Rathi, CEO, FCA, said the programme will help “identify risks sooner, make faster, more consistent decisions and reduce unnecessary burdens on firms.”

Separately, the FCA’s perimeter report highlighted areas for possible legislative change, including financial promotions, betting products and payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term. It also flagged risks outside its remit, such as AML-only firms, the use of AI in financial guidance, and speculative prediction markets.