To ask the Chancellor of the Exchequer, what recent assessment he has made of the ability of the financial regulatory framework to respond to the effect of artificial intelligence on the trading of equities, bonds and derivatives.
3 February 2021
On 9 November 2020, the Chancellor set out in his speech to the House on the Future of Financial Services his commitment to ensuring that innovative technology delivers better outcomes for both consumers and businesses, and that the UK’s regulatory environment is ready to manage the implications of technological change.
The regulators regularly consider the impact of technological change on financial markets, working closely with the sector. As an example, on 12 October 2020, the Bank of England and the Financial Conduct Authority co-chaired the first Artificial Intelligence Public Private Forum, bringing together financial services firms, tech firms, regulators, and industry standards bodies to collectively investigate how developments in artificial intelligence are driving change in financial markets. The Forum will conduct an ongoing assessment of the practical challenges AI presents to the financial services industry, and collate views on potential areas where principles, guidance, regulation or examples of best practices could help to ensure the safe adoption of these technologies.