Global Trustee and Fiduciary Services Bite-Sized Issue 5 2025

5 QUICK LINKS AIFMD (UK) CRYPTOASSETS DATA EMIR FINTECH FSB IOSCO MARKET ABUSE REGULATION MICA MIFID II/MIFIR SUSTAINABLE FINANCE/ ESG ASIA PACIFIC AUSTRALIA EUROPE LUXEMBOURG NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 5 | 2025 FINTECH FCA Set to Launch Live AI Testing Service On 29 April 2025, the Financial Conduct Authority (FCA) announced that it is seeking views (in the form of an Engagement Paper) from firms about how its live AI testing service can help them to deploy safe and responsible AI, which will benefit UK consumers and markets. The FCA says that the live testing service would be a new component of its AI Lab, which has been supporting firms with the development and deployment of AI and would help to fill a testing gap slowing firms’ adoption of AI. The FCA also states that the live testing service would allow firms to collaborate with it while they check that their new AI tools are ready to be used. It would also provide the FCA with intelligence to better understand how AI may impact UK financial markets. The live testing service will provide regulatory support to firms who are ready to deploy consumer or market-facing AI models, and the FCA says that the proposed live testing service would run for 12 to 18 months, with plans to launch in September 2025. Feedback to the FCA’s Engagement Paper on its ‘Proposal for AI Live Testing’ closes on 10 June 2025. Link to Engagement Paper here Link to FCA Speech ‘AI for growth – how the FCA can help’ here HKMA: Report on ‘Financial Services in the Era of Generative AI: Facilitating Responsible Adoption’ On 9 April 2025, the Hong Kong Institute for Monetary and Financial Research (HKIMR), the research arm of the Hong Kong Academy of Finance (AoF), released a new Applied Research report, titled ‘Financial Services in the Era of Generative AI: Facilitating Responsible Adoption’. HKMA says that the report provides an overview of the evolution of Generative Artificial Intelligence (GenA.I.) and its broader implications for both the financial services industry and financial regulators. The report draws on the findings from a survey and interviews that gathered the views of market participants on the current state of GenA.I. adoption among local financial institutions, the expected trajectory of GenA.I. development in Hong Kong, and the strategies employed for risk management and talent development. HKMA also states that the report finds that the adoption of GenA.I. is progressing steadily across the financial services industry in Hong Kong, with 75% of the surveyed financial institutions already having implemented at least one GenA.I. use case, or are currently piloting and designing use cases and exploring potential investment areas. HKMA adds that this ratio is expected to increase to 87%within the next three to five years. There are challenges hindering adoption, including concerns regarding model accuracy, data privacy and security, as well as constraints related to resources and talent. However, HKMA says that the emergence of less resource-intensive models and maturing technology, coupled with regulatory engagement, are likely to contribute to the broadening of GenA.I. adoption over time. Based on these findings, HKMA says that the report outlines some considerations aimed at facilitating responsible GenA.I. adoption by the financial services industry in Hong Kong. Link to Report here