The FCA has outlined its annual work programme for 2026/27, revealing plans to integrate AI into its regulatory workflows.
The regulator plans to use AI to speed up authorisations, with the new tool being developed internally and integrated into existing FCA systems.
It will also use generative AI to modernise regulation, streamline supervision and improve firms’ experience, by reducing unnecessary administrative burdens.
The FCA says AI will enable it to detect harm more effectively and speed up regulatory decision-making.
As part of this, it plans to use generative AI to review documents received from firms, supporting faster decisions, and use a new sandbox environment to test automated data feeds between the FCA and firms.
The FCA also plans to use AI to invest in 'smarter case handling', using analytics and digital tools to quickly identify the greatest sources of harm and triage intelligence more efficiently.
Consultation on fees and levies
The FCA is proposing to raise minimum and flat fees, as well as application fees, by 1% - which it says is the lowest rise in the fees budget since 2017/18 and the lowest annual funding requirement (AFR) increase in a decade, at 0.7%.
To keep fee increases to a minimum, the FCA says it has kept its budgeted headcount flat, which accounts for around two-thirds of its costs, and has looked to absorb inflationary increases and cost uplifts by "finding efficiencies and identifying savings in our budget".
Nikhil Rathi, chief executive of the FCA, said: "This year’s programme builds on our ongoing drive towards smarter, more data-driven regulation, helping us identify risks sooner, make faster, more consistent decisions and reduce unnecessary burdens on firms. We’re focused on helping consumers navigate their financial lives, reinforcing trust in financial services and supporting growth and competitiveness while keeping our fee increases low."
