FCA Urges AI Providers to Add Financial Advice Disclaimers

The Financial Conduct Authority is urging general-purpose AI providers, including the creators of ChatGPT, Gemini, and Claude, to implement clear and consistent disclaimers for financial advice generated by their models. During an October 19 speech, FCA Chief Data, Information and Intelligence Officer Jessica Rusu warned that these tools are blurring the boundary between regulated and unregulated financial activity. The regulator revealed that 60% of consumers mistakenly believe they have recourse or compensation if AI-generated advice fails.

While the FCA does not intend to expand its regulatory remit, it is calling for better signposting to protect consumers. The regulator also highlighted poor practice among regulated firms, citing failures in governance, a lack of human oversight, and the exclusion of vulnerable consumers. In response, the FCA is implementing six of seven recommendations from the Mills Review, which includes developing a framework for autonomous AI agents capable of executing transactions.

Industry reactions were mixed. Brian Byrnes of Moneybox called the signposting requirements a significant step, and Sam Christopher of Quilter noted that responsible adoption can improve outcomes. However, Amal Jolly, CEO of Saturn, argued that simply asking big tech companies to use disclaimers is insufficient to protect families from irreversible financial decisions.