Global Trustee and Fiduciary Services Bite-Sized Issue 2 2026

4 QUICK LINKS AIFMD BENCHMARKS REGULATION CRYPTOASSETS FINTECH FUND LIQUIDITY MIFID II/MIFIR MONEY MARKET FUNDS OPERATIONAL RESILIENCE SUSTAINABLE FINANCE/ESG T+1 ASIA PACIFIC EUROPE NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 2 | 2026 FINTECH Mills Review to Consider HowAI Will Reshape Retail Financial Services On 27 January 2026, UK Financial Conduct Authority (FCA) launched a review into the implications of advanced artificial intelligence (AI) on consumers, retail financial markets and regulators (the Review). The FCA is seeking views on 4 interrelated themes: 1. How AI could evolve in the future , including the development of more autonomous and agentic systems; 2. How these developments could affect markets and firms , including changes to competition and market structure and UK competitiveness; 3. The impact on consumers , including how consumers will be influenced by AI but also influence financial markets through new expectations; and 4. How financial regulators may need to evolve to continue ensuring that retail financial markets work well. While wholesale markets and broader societal impacts are out of scope, the FCA said the Review recognises that developments in these areas may indirectly influence retail financial services and will be considered where relevant. The FCA said that feedback will shape a series of recommendations to be reported to the FCA Board this summer, informing how the FCA can guide and respond to AI-driven transformation. The FCA adds that this will culminate in an external publication. The deadline for comments is 24 February 2026. Link to the Review here Current Approach to AI in Financial Services Risks Serious Harm to Consumers andWider System On 20 January 2026, the UK Treasury Select Committee (TSC) published a report as a result of its inquiry, launched on 3 February 2025, to examine the opportunities and risks posed by AI for the UK financial services sector. According to evidence received by the TSC, more than 75% of UK financial services firms are now using AI, with the largest take-up among insurers and international banks. AI is being used by businesses in a variety of ways, including to automate administrative functions and to deliver core services such as processing insurance claims and credit assessments. In the report, the TSC acknowledges that AI and wider technological developments could bring considerable benefits to consumers. The TSC, therefore, encourages firms and the FCA to work together to ensure that the UK capitalises on AI’s opportunities. However, the TSC says it believes that action is needed to ensure that this is done safely. One recommendation is for the Bank of England and the FCA to conduct AI-specific stress-testing to boost businesses’ readiness for any future AI-driven market shock. The report also notes that, despite the Critical Third Parties Regime being set up for more than a year, no organisations have yet been designated under it. The TSC urges the Government to designate AI and cloud providers deemed critical to the financial services sector in order to improve oversight and resilience. Link to the Report here