PIMFA WEEKLY NEWS BULLETIN

20 February 2022

PIMFA responds to FCA DP22/4 on Artificial Intelligence (aka BoE DP 5/22 Artificial Intelligence and Machine Learning)

In this DP, the regulators acknowledge the potential for AI to enable investment firms to offer better products and services, to improve operational efficiency, increase revenue and drive innovation, leading to better outcomes for consumers, firms, markets and the wider economy, without stifling innovation.

Following consultation with members and engagement with the International Regulatory Strategy Group and other trade bodies, PIMFA encourages the regulator to maintain its principles-based approach and use the existing regulatory framework when regulating AI. Where necessary, the regulator should consider producing guidance, rather than introducing new regulations. It also proposes that a sector-specific definition of AI would be useful.