The United Kingdom’s Financial Conduct Authority (FCA) has released a regulatory blueprint for retail financial services, saying the sector is moving rapidly toward automation powered by autonomous “agentic AI.” According to Cointelegraph, the 147-page report, titled “AI and the future of retail financial services,” was led by executive director Sheldon Mills and describes a shift from periodic, human-led decisions to continuous, AI-enabled services that may increasingly rely on programmable financial infrastructure. Mills wrote that the “central shift” is toward financial activity that is “continuous and delegated,” and noted that in January the FCA launched a review into the implications of advanced AI for consumers, retail financial markets, and regulators.
The report sets out seven recommendations for the FCA to consider, including enabling “the foundations for agentic finance” through trusted agent protocols and scaling up the FCA’s AI Lab to support AI models and system innovation in financial services. It also frames AI’s evolution as moving from predictive tools to independent agents operating across an “autonomy spectrum,” where at the most advanced end humans may become observers while AI continuously manages capital. The report says the pace of change has exceeded earlier regulatory timelines, citing more than 20 frontier models released since late 2025 alone, and adds that FCA research indicates 20% of UK adults are open to allowing AI to make autonomous financial choices.
As the report describes a transition toward autonomous portfolio and cash management, it argues that multi-day settlement processes can become an operational bottleneck for AI agents executing multi-layered strategies. It states that systemic stablecoins and tokenized bank deposits could serve as settlement infrastructure because they operate on programmable ledger networks that can support instantaneous, atomic settlement without human clearance. At the same time, the FCA review highlights corporate governance and legal accountability risks created by automation, including industry concern over who is responsible for autonomous decisions. The report notes one CEO’s view that the sector may eventually need a “Turing test” to distinguish human intent from algorithmic behavior in markets.
Emma Banymandhub, CEO of The Payments Association, said the review reinforces that firms should treat agentic AI as an accountability and governance issue while supporting responsible innovation as adoption accelerates. Mills, who is leaving after eight years at the FCA, told The Financial Times ahead of the report’s release that managers would still need to be accountable for the actions of their AI models, saying a human must remain responsible for what the systems do.
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