UK — The Register
UK finance watchdog wants firms to report AI failures and close calls
Policy1 min read
The UK's main financial watchdog, the Financial Conduct Authority (FCA), wants banks and other finance firms to report serious AI failures and near-misses. It says clear responsibility is needed as AI systems become more independent.
What happened
At a Bloomberg event in London, FCA data chief Jessica Rusu said firms must report significant AI failures and near-misses, not just major incidents. A near-miss is an event that almost caused harm but did not. She warned that badly managed AI can cause harm to customers, cyber weaknesses and operational failures, and it can spread these problems very quickly.
Key facts
- The UK financial sector added £223.6 billion to the economy in 2025.
- That was 8 percent of national output.
- This share was the fourth highest among OECD countries, a group of mostly rich nations.
- The House of Commons Treasury Committee called in January for stress tests to check that firms can handle AI-driven market shocks.
Why the rules are being discussed
The UK government says it will work with Parliament and experts to look at how to strengthen the rules. The aim is to protect Britain from AI-driven cyber attacks and from AI systems getting out of human control. An expert said aviation is a good model, because plane near-misses must be reported in most countries so that people can learn from them before a disaster happens.
Why it matters
Banks and other money firms are starting to use AI agents, which are programs that can act on their own. If something goes wrong, it must be clear who is responsible. Reporting small problems early could help stop bigger ones later.
What to watch
- Whether the government adds AI-specific rules to the Cyber Security and Resilience (Network and Information Systems) Bill.
- Whether the FCA turns its call for near-miss reporting into official rules.
- Whether financial regulators run the AI stress tests the Treasury Committee asked for.
Glossary
- FCA
- The Financial Conduct Authority, the UK regulator that watches over banks and other financial firms.
- near-miss
- An event that could have caused harm but did not, often used to learn how to prevent real accidents.
- OECD
- The Organisation for Economic Co-operation and Development, a group of mostly wealthy countries that works on economic policy.
- Cyber Security and Resilience (Network and Information Systems) Bill
- A UK draft law meant to make computer networks and important services safer from cyber attacks.