FinTech Global FS Regulatory Round-up - w/e 23 October 2026

UK

FCA: Mansion House dinner

The FCA has published an address by its CEO, Nikhil Rathi, at the Mansion House dinner. In Mr Rathi's address, he explained the regulator’s approach to market integrity in the context of developing technology, financial crime and system-wide risks. The FCA is focusing more strongly on outcomes, making more use of technology and intelligence, and using its existing powers more assertively. Priority areas include, among others: concentration risk and risks arising from decentralised finance; and AI. Among other things, Mr Rathi noted that the FCA intends to use AI tools to improve supervisory risk assessments, analyse returns and intelligence, and identify missing or concerning information. [23 Oct 2026] #DeFi #AI

FCA consults on changes to its Financial Crime Guide

The FCA has published CP26/38: Financial Crime Guide Updates which sets out proposals in many areas in response to emerging risks, including AI, cryptoassets and sanctions regimes. The FCA also notes that it is looking at further ways to provide timely financial crime guidance, and explains some of the ideas under consideration. The following areas are addressed in CP26/28:

• fraud;
• cryptoassets – to reflect a new regime coming into effect from October 2027;
• financial and trade sanctions;
• proliferation financing;
• data security;
• financial crime systems and controls; and
• money laundering and terrorist financing.

CP26/38 is relevant to all firms which the FCA supervises for financial crime, including under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs).

Responses are requested by 24 December 2026. [23 Oct 2026] #AI #Crypto #DigitalAssets #DataSecurity

FSRC publishes report on home and travel insurance regulation

The House of Lords Financial Services Regulation Committee (FSRC) has published a report on home and travel insurance regulation. The FSRC found that, among other things, the growing use of AI by consumers to research home and travel insurance is a cause for concern. It recommends, among other things, that the FCA should consider what it can do to make consumers aware of the potential problems of relying on AI when making insurance purchasing decisions. [23 Oct 2026] #AI

FCA consults on DeFi and cryptoasset perimeter guidance

The FCA has published Guidance Consultation 26/7: Decentralised finance guidance (DeFi) (GC26/7), which sets out proposed non-Handbook guidance to help firms providing financial services using decentralised finance (DeFi) comply with FCA rules on operational resilience and financial crime, and with the Money Laundering Regulations (MLRs). This applies to FCA regulated firms providing financial services using DeFi that are:

• in scope of Senior Management Arrangements, Systems and Controls (SYSC) 15A (operational resilience);
• in scope of SYSC 6 (compliance, internal audit and financial crime); and
• subject to the MLRs.

The FCA has also published Consultation Paper 26/36: Cryptoasset perimeter guidance (CP26/36), which sets out proposed guidance that aims to help firms understand new exclusions from cryptoasset regulation, following recent legislative changes. The intention is that this will reduce the risk of firms inadvertently breaching the perimeter when the cryptoasset regime comes into force on 25 October 2027. Firms should read GC26/7 alongside CP26/36.

The FCA acknowledges that the timing of the publication of the draft Financial Services and Markets Act 2000 (Cryptoassets) (Miscellaneous Amendments) Regulations 2026 will have created uncertainty for a small number of firms around the need to be authorised. It explains that where a firm can demonstrate that the uncertainty relating to the technical services provider exclusion has materially impacted its ability to submit a complete application during the application period, the FCA will exercise some forbearance.

Responses to the consultations are requested by 18 November 2026. The FCA aims to publish final guidance in January 2027. [21 Oct 2026] #DeFi #Crypto #DigitalAssets

TSC letter to BoE and FCA about CTPs regime and recent CTP outage

The Treasury Select Committee (TSC) has published a letter from its Chair, Meg Hillier, to the Governor of the Bank of England (BoE), Andrew Bailey, and Chief Executive of the FCA, Nikhil Rathi, on the Critical Third Parties (CTPs) regime and a recent CTP outage affecting a number of organisations, including banks. The letter includes a series of questions which seek to establish how the BoE and the FCA will use their powers in relation to this incident.

The Chair expects an initial response by 4 November 2026 and a full response by 20 January 2027. [21 Oct 2026] #CTPs

HM Treasury and MAS joint statement on the 11th UK-Singapore Financial Dialogue

HM Treasury has published a joint statement with the Monetary Authority of Singapore (MAS) on their 11^th Financial Dialogue held on 20 October 2026. The statement outlines what was discussed, covering, among other things, digital finance and innovation, including taking stock of and advancing their cooperation in digital assets, AI, and quantum technologies.

The Financial Dialogue will be followed by an industry-led UK-Singapore business roundtable on 21 October. The 12th UK-Singapore Financial Dialogue will be hosted by the UK in 2027. [20 Oct 2026] #DigitalFinance #DigitalAssets #AI #Quantum

FCA shares examples to support the safe and responsible adoption of AI in financial services

The FCA has published AI in financial services: good practice and areas for improvement, which shares examples gathered from industry engagement, supervisory work and the FCA’s AI Lab initiatives to support the safe and responsible adoption of AI in financial services. Good practice and areas for improvement covered include: the Consumer Duty and consumers in vulnerable circumstances; governance and accountability; and operational resilience.

On Consumer Duty and consumers in vulnerable circumstances, firms that use AI safely and responsibly were observed to:

• define the consumer need and target market before designing and deploying AI-supported products and services;
• test consumer outcomes across different consumer characteristics and scenarios;
• use proportionate controls to manage AI bias and accuracy, and to ensure that decisions can be explained;
• tell consumers how they have used AI, and its limits, and test their understanding where appropriate; and
• monitor live outcomes so they can spot and deal with issues quickly.

On governance and accountability, there is no one-size-fits-all model, but firms deploying AI safely and responsibly generally share common features:

• proportionate, risk-based AI governance throughout the AI lifecycle;
• clearly designed human oversight and escalation triggers;
• multidisciplinary governance, evidenced and supported by continuous monitoring; and
• senior managers who are accountable for AI systems and for taking reasonable steps to mitigate risks.

On operational resilience, again, there is no one-size-fits-all model, but firms deploying AI safely and responsibly generally share some common approaches:

• firms adopt AI systems and architecture that reflect the sensitivity and security requirements of their use cases;
• dependencies on AI models, including those provided by third parties, are recognised and integrated into firms’ operational resilience planning (where applicable);
• firms take steps to mitigate risks from cyber threats and of becoming overly dependent on a specific AI model or third party; and
• third-party relationships are managed proactively, to ensure that firms are sighted and can plan for model updates or changes in products.

The FCA also reiterated the messages set out in its 2024 AI Update publication which explains how the existing regulatory framework sets a foundation for how AI adoption.

Alongside the publication, the FCA has also published a speech by its Chief Data, Information and Intelligence Officer, Jessica Rusu, at Bloomberg's UK Policy Series. The speech addressed the transition towards ‘agentic finance’, explained as autonomous AI systems capable of searching products, managing payments and investments, and transacting with other agents. Ms Rusu announced that the FCA will work with industry, fellow regulators and frontier AI labs to develop a trusted framework for agentic finance, covering agent identity, delegated authority, accountability and execution. The FCA also called on gen AI providers to include clear, proportionate and consistent disclaimers where their models generate financial information or advice, and signalled that near-miss reporting for agentic AI is becoming a regulatory priority. The speech referenced the Mills Review (published July 2026) and confirmed the FCA is embedding six of its seven recommendations into live work immediately; the findings from a joint FCA/Bank of England (BoE) AI survey (showing that 86% of firms now use AI) are due to be published the following week. [19 Oct 2026] #AI

Europe

ECB’s Elderson comments on AI risk

The European Central Bank (ECB) has published the interview of its Member of the Executive Board and Vice-Chair of the Supervisory Board, Frank Elderson with Die Presse. Mr Elderson provided his thoughts on, among other things, AI risk. He explained that banks are expected to submit concrete action plans by the end of October 2026 addressing AI-related cyber risks. Supervisory concerns also include excessive reliance on models, bias, poor data quality and concentration risks arising from dependence on cloud providers. [20 Oct 2026] #AI

EPC launches SCARLET initiative to support consistent use of EU digital identity wallets

The European Payments Council (EPC) has announced the start of development of SCARLET (Strong Customer Authentication Acceptance Rulebook and Liability Framework for EUDIW Transactions), a new standardisation framework designed to support the consistent acceptance of EU Digital Identity Wallets (EUDIWs) by payment service providers (PSPs) in the context of Strong Customer Authentication (SCA).

SCARLET is intended to reduce the risk of multiple, potentially non-interoperable approaches emerging across Europe by providing a common standard for PSPs and EU digital identity wallet providers.

The initial version of the scheme will focus on the acceptance of EU digital identity wallets by PSPs under the existing Payment Services Directive (PSD2), the European Banking Authority’s (EBA’s) existing RTS for SCA, applicable level 2 legislation, and other regulatory guidance provided.

The EPC intends to publish the first version of the SCARLET 1.0 rulebook in December 2027, following an open consultation scheduled for summer 2027. The EPC will then work on extending the SCARLET framework to the forthcoming Payment Services Regulation (PSR). [19 Oct 2026] #Payments

Australia

ASIC chair addresses relationship between regulatory scrutiny and the media

ASIC Chair Sarah Court has delivered a keynote address to the Walkley Foundation Business Journalism Awards, discussing the relationship between financial journalism and regulatory accountability. A key insight, among other things, is that AI is a key area of focus - ASIC is examining how AI is used across the financial system, including in bank customer-facing services and decision-making, and its potential to facilitate market manipulation. [22 Oct 2026] #AI

Hong Kong

HKMA issues code of practice for retail payment system infrastructure operators designated as critical infrastructure operators

The HKMA has issued a code of practice (with annex) for retail payment system infrastructure operators designated as critical infrastructure operators under the Protection of Critical Infrastructures (Computer Systems) Ordinance. 

The code of practice took effect on 15 October 2026, and is aimed at providing practical guidance regarding the compliance with category 1 and category 2 obligations under the Ordinance. 

The HKMA may, in consultation with the Commissioner of Critical Infrastructure (Computer system Security) and industry stakeholders, from time to time review and amend the requirements stipulated in this code according to the latest technological development and industry best practices.  [15 Oct 2026] #Payments

Singapore

MAS: UK and Singapore hold 11th UK-Singapore Financial Dialogue

The Monetary Authority of Singapore (MAS) has published a joint statement with HM Treasury on the 11th UK-Singapore Financial Dialogue held on 20 October 2026. The statement outlines what was discussed, covering, among others, digital finance and innovation, including taking stock of and advancing their cooperation in digital assets, AI, and quantum technologies.

The 12th UK-Singapore Financial Dialogue will be hosted by the UK in 2027. [20 Oct 2026] #DigitalFinance #DigitalAssets #AI #Quantum

MAS announces 2026 Global FinTech Hackcelerator and FinTech Excellence Awards finalists

MAS has announced 42 finalists for the 2026 Global FinTech Hackcelerator and the Singapore FinTech Festival FinTech Excellence Awards. This year’s Global FinTech Hackcelerator focuses on: integrating credit and fraud risk modelling in digital banking; reimagining of wealth management for a digitally native generation; and empowering small and medium-sized enterprises (SMEs) to better assess, quantify and proactively manage their business risk exposure.

The FinTech Excellence Awards recognise corporates and individuals whose initiatives have contributed significantly to the FinTech ecosystem and advanced innovation in financial services. The winners will be revealed on 19 November 2026. [19 Oct 2026] #FinTech

MAS consults on expanding FIDReC membership to payment service providers

MAS has published a consultation on a proposal requiring all major payment institution and standard payment institution licensees, together with MAS-regulated stablecoin issuer licensees once the stablecoin regulatory framework takes effect, to subscribe to the Financial Industry Disputes Resolution Centre (FIDReC). Responses are requested by 30 November 2026. [16 Oct 2026] #Payments #Stablecoins #DigitalAssets

Malaysia

BNM launches SSDS+ platform for digital and tokenised bond and sukuk issuance

Bank Negara Malaysia (BNM) has announced the launch of SSDS+, the next-generation platform for the issuance, depository and safekeeping of tokenised bonds and sukuk. Developed in-house using cloud and distributed ledger technologies, SSDS+ builds on the existing Scripless Securities Depository System (SSDS), the central securities depository for Malaysia's wholesale financial market, and extends its capabilities to support the issuance of tokenised government and corporate retail bonds. [20 Oct 2026] #Tokenisation #DigitalAssets #DLT

Thailand

IFSCA: Guidelines for algorithmic trading on stock exchanges

The International Financial Services Centres Authority (IFSCA) has issued guidelines establishing a regulatory framework for algorithmic trading on GIFT IFSC stock exchanges. The guidelines are intended to strengthen market integrity, mitigate systemic and operational risks, and ensure fair and equitable access to market infrastructure, while preserving the operational flexibility that competitive stock exchanges demand. The circular takes effect immediately, with stock exchanges given three months to achieve full implementation. #AlgoTrading

US

CFTC Innovation Task Force: Agenda for inaugural Frontier Forum on Super Intelligence

The Commodity Futures Trading Commission (CFTC) Innovation Task Force has released the agenda for the inaugural Frontier Forum on Super Intelligence which will take place on October 28.  The meeting will cover the use of super intelligence in derivatives markets and agentic trading. [Oct 20, 2026] #AI #SuperIntelligence

SEC announces roundtable on machine understandable data in the context of super intelligence

The SEC has announced that it will host a public roundtable on 9 November 2026 concerning machine-understandable data, super intelligence and associated risks and costs.

The roundtable will examine how the public, market participants and investors use machine-understandable data for Super Intelligence solutions. Feedback will inform SEC staff’s consideration of how the SEC can better facilitate Super Intelligence. The event will take place at the SEC’s headquarters in Washington, D.C.; it will also be streamed live on the SEC website with a recording made available at a later date. [Oct 19, 2026] #AI #SuperIntelligence