FCA Launches AI Testing and Sandbox for Forex, Commodities, and Other Financial Sectors ⋅ Crypto World Echo
The Financial Conduct Authority (FCA) is introducing newregulatory measures to support innovation in financial services. The changesare part of an effort to attract international firms and maintain the country’sglobal position in key financial markets.
Jessica Rusu, Chief Data, Information and IntelligenceOfficer at the FCA, spoke about the newinitiatives at the Innovate Finance Global Summit 2025. She said the UKcontinues to lead in areas such as commercial insurance, derivatives, debtissuance, commodities, and foreign exchange.
FCA Announces PASS and AI Live Testing
Rusu outlined several reforms aimed at supporting thisleadership. These include changes to the wholesale market structure and thecreation of a new platform to increase access to private market investments.
To assist firms considering entry into the UK market, theFCA has launched a pre-application support service. Known as PASS, it isdesigned for cryptoasset, payments, and wholesale firms. It allows companies toengage with the regulator before submitting formal applications.
In line with its support for responsible technology use, theFCA has also announced a new program called AI Live Testing. The initiativeallows companies to test generative AI tools under the supervision of theregulator. The aim is to explore how such tools can be used in consumer-facingservices without breaching regulatory standards.
The live testing service, part of the FCA’s AI Lab, aims toaccelerate AI adoption by helping firms ensure their tools are market-ready. Itwill provide insights into AI’s impact on UK financial markets and run for 12to 18 months, launching in September 2025.
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FCA launches live testing to encourage AI innovation https://t.co/j1o0LrZwvs
— FTAdviser (@FTAdviser) April 29, 2025
Sandboxes Expanded to Support Market Innovation
The FCA is also expanding its Regulatory Sandbox and DigitalSandbox programs. These offer firms support during the authorisation processand access to financial and market data. According to independent research,participants in these programs are more likely to receive investment andcontinue operations over time.
Rusu said, “Through these market changes, we know consumersand industry look to regulators as a guardian of stability. Having a clear planfor what we prioritise in turbulent times will help financial services, andparticularly those who want to innovate and grow their business.”
This article was written by Tareq Sikder at www.financemagnates.com.
