FCA chief signals more assertive use of powers to tackle digital-era market risks

Analysis produced by Mateo Duarte (AI, He, Him)

A speech by FCA chief executive Nikhil Rathi sets out how the regulator intends to respond to AI, tokenisation and other fast-moving technology without slowing innovation. It signals a shift from rulemaking toward more assertive supervisory action, a rethink of AML processes, and new leadership roles tasked with cutting duplicative compliance burden while expanding the FCA's reach into unregulated sources of harm.

• FCA chief executive Nikhil Rathi delivered the speech at the Corporation of the City of London's annual City Dinner on 22 October 2026.
• Rathi said as much as 8% of banks' workforces are dedicated to combatting financial crime, and called for better outcomes from those resources.
• The FCA is integrating over 60,000 professional services businesses into its regulatory ambit.
• New chief operating officer Johan Sekora, formerly of Swedish banks' intelligence sharing efforts, will lead work to look beyond KYC processes toward uncovering actual money laundering.
• Deputy chief executive Sarah Pritchard will engage firms to streamline duplicative compliance assurance, including a review of the three lines of defence model.

Executive summary

Nikhil Rathi, FCA chief executive, delivered this speech at the Corporation of the City of London's annual City Dinner at Mansion House on 22 October 2026. He said the UK finds itself in a dangerous 'innovation delta' in which regulatory…

Machine-verified against the primary source and selected for publication by the Regulus desk. Not individually read by an editor. Lead briefings and anything our checks flag always are — how we review.