The National Audit Office (NAO) has launched an investigation into the effectiveness of the Financial Conduct Authority and its ability to manage a growing list of responsibilities, including overseeing online fraud, cryptography and risks surrounding artificial intelligence.
It is understood that the review includes an examination of FCA’s governance, strategy and culture as well as its approach to regulating different types of companies and markets. Additional areas of investigation It includes the use of data and intelligence to identify and address risks and their effectiveness in achieving their legal objectives and providing public value.
The FCA was recently tasked with ensuring that cryptocurrency companies comply with money laundering rules, and by October, it will be tasked with monitoring cryptocurrency-related advertisements. These responsibilities can be expanded as the government makes final decisions about how to regulate the broader sector.
Henry Palany, Global Head of Regulatory Affairs include companyHe said: “Institutions such as the FCA play an important role in the development of the financial services industry, providing institutions with key guidance, as well as supporting them to operate to the highest standards. At a time when financial crime, in particular, remains a pertinent global issue, it must be kept abreast The pace of change is a top priority.
“This review represents a step forward and will help the FCA fine-tune its operations, improve operations and ensure it is fully prepared to help companies navigate an increasingly complex regulatory landscape,” Palani added.
In response to the news, Khalid Talukdar, co-founder of FC DKK Partners He said: “The FCA plays a critical role in enabling the financial services industry to operate to the highest standards, but that does not mean the regulator is above scrutiny. Working with the National Financial Conduct Authority will enable the FCA to embark on An independent review of its policies, procedures and operational effectiveness, which is long overdue.
“Having a regulator fully equipped to serve a dynamic market with artificial intelligence and the exponential rise of cryptocurrencies is in all our best interests, and we welcome this announcement as a positive step forward for the industry,” added Talukder.
FCA chairman Nikhil Rathi has also been trying to stay ahead of the risks posed by artificial intelligence. He used a letter last week to warn banks, investors and insurers that while AI can improve productivity and detect fraud and money laundering, top managers will ultimately be held accountable for any decisions AI programs make.