{
  "id": 16099485,
  "title": "Threats to financial system ‘on steroids’ after AI boom, FCA chief warns",
  "url": "https://urgent.news/2026/10/22/threats-to-financial-system-on-steroids-after-ai-boom-fca-chief-warns",
  "topic": "ai",
  "section": "AI",
  "published": "2026-10-22T20:00:00.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/threats-to-financial-system-on-steroids-after-ai-boom-fca-chief-warns/"
  },
  "original_language": "en",
  "account": "The boss of the Financial Conduct Authority (FCA) has warned that the risk to the UK's financial system is currently \"on steroids\" due to the unchecked rise of artificial intelligence (AI). Nikil Rathi, the FCA chief, expressed concern that excessive \"tick-box\" rulemaking would fail to keep pace with increasingly complex threats in the digital age. Speaking at a City of London dinner, Rathi urged regulators to avoid adopting an \"analogue approach in a digital age\" and emphasized that the threats to market integrity have reached unprecedented levels. He highlighted issues such as unprecedented volatility, concentration risks, new forms of market abuse, and rampant cross-border financial crime, all of which are exacerbated by fast-emerging technologies. Rathi pointed to recent incidents where global AI leaders like OpenAI, Meta, and Alphabet have lost control of their most advanced models during testing, fueling concerns over the safety of the technology. Former AI engineers have also warned that top AI laboratories are prioritizing speed over safeguards in their development race. In response, Bank of England governor Andrew Bailey called for regulators to enhance their grasp on the rise of agentic AI to avoid exposing the financial system to materially higher risks. The European Central Bank and Federal Reserve are also intensifying their efforts to contain AI threats. Rathi cautioned that traditional regulatory approaches, such as creating more rules and legislation, would not be effective enough to address the rapidly changing threat landscape. Instead, he advocated for a more fluid approach focused on results rather than rules, emphasizing that policymaking alone is insufficient and risks keeping pace with yesterday's markets instead of embracing the current one.",
  "summary": "The unchecked rise of artificial intelligence means the level of risk facing the financial system is currently “on steroids”, according to the boss of the Financial Conduct Authority, who warned that excessive “tick-box” rulemaking would fail to keep pace with increasingly complex threats. Speaking at a City of London dinner, Nikil Rathi said risks to [...]",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}