Helping you stay one step ahead, with practical insights for paraplanners and advisers.
🤖 FCA to Launch Live AI Testing Service
The FCA has announced plans to launch a live AI testing service this September. The idea? To give firms a safe space to trial consumer- or market-facing AI tools, working alongside the regulator. If you’re considering using AI to enhance your advice process (think onboarding, risk profiling, or document automation), this could be a golden opportunity.
The service will run for 12 to 18 months and form part of the FCA’s wider tech-positive strategy. The FCA says it’s committed to supporting innovation while protecting consumers – and this live testing approach aims to help firms deploy AI responsibly, without fear of crossing regulatory lines.
Engagement Paper: Proposal for AI Live Testing
💡 Practical tip:If your firm is exploring AI tools, start by mapping out your use case. Is it aimed at improving client understanding? Speeding up suitability letter writing? Think about risks – bias, explainability, data protection – and how you’d address them. Even if you’re not planning to test with the FCA, being ‘AI-ready’ is likely to become a regulatory advantage.
🌍 Crypto & Digital Assets – Regulation Is Catching Up
The Government is moving closer to finalising legislation to regulate crypto assets – with licensing and registration of crypto firms on the horizon. The FCA has already taken down 900+ scam sites and issued 1,700 consumer alerts.
The new regime is expected to bring greater clarity and accountability. Key changes include:
- Firms must be registered with the FCA
- Enhanced enforcement powers
- Stronger investor protection mechanisms
Crypto ownership in the UK is now at 12% of adults, and the FCA is keen to protect this growing user base.
New cryptoasset rules to drive growth and protect consumers
💡 Practical tip for advisers: If your clients are asking about crypto, consider including it in your advice scope documentation. Outline where you do (or don’t) offer guidance – especially around scams and red flags. It can help manage expectations and demonstrate Consumer Duty compliance.
♻️ SDR Delay for Portfolio Managers
The FCA has decidednotto proceed (for now) with plans to extend Sustainability Disclosure Requirements (SDR) to portfolio managers. The feedback was broadly supportive, but the regulator says “now isn’t the right time.”
Instead, attention will turn to its upcoming review of Model Portfolio Services (MPS) – specifically looking at how firms are applying the Consumer Duty in practice.
FCA publishes update on extending the UK SDRs to portfolio managers
💡 Practical tip: Paraplanners can help ensure your investment proposition stands up to scrutiny by stress-testing model portfolios against client needs, preferences, and objectives. Keep an eye on cost/value assessments and be ready to evidence suitability.
📈 AI, Innovation & Becoming a Smarter Regulator
In a recent speech, the FCA’s Jessica Rusu explained how the regulator is embracing tech – not just to supervise better, but to reduce regulatory burdensfor firms. Think streamlined authorisation forms, fewer legacy data returns, and even a machine-readable Handbook.
The message is clear: innovation isn’t just allowed – it’s encouraged, provided it benefits consumers.
AI for growth – how the FCA can help
💡Practical tip:Innovation doesn’t always mean big budgets or bots. Small wins – like automating client communications or streamlining file reviews – can make a big impact. paraplanners and operations staff often spot these opportunities first.
What does all this mean for you?
We know it can feel like there’s a lot of change, but much of it is about enabling better advice, more efficient firms, and safer outcomes for clients. Whether you’re a paraplanner diving into tech tools or an adviser preparing for crypto conversations, this month’s updates offer useful prompts to reflect, review, and maybe even rethink.
At We Complement, we’re here to help you stay ahead – with clarity, confidence, and compliance.
📩 Want to talk about how these updates affect your CIP, CRP, or advice process? Let’s chat.hello@wecomplement.co.uk
