AI regulation should build on existing financial services rules, not create separate regime, TISA urges

September 2, 2026

TISA has called on regulators to build on the UK's existing financial services framework when overseeing the use of AI, rather than creating a separate regulatory regime, warning that a parallel framework could create unnecessary duplication and uncertainty for firms.

In its response to the Digital Regulation Cooperation Forum (DRCF) call for input on Consumer interest and AI, TISA also called for the official sector to work with industry to develop model contractual clauses for AI use, procurement and third-party relationships, helping clarify accountability and responsibilities as adoption increases.

TISA recommended consumers be offered targeted opt-outs where AI significantly affects them, while cautioning against a blanket right to reject all AI use for fear it could increase costs and undermine the benefits of the technology.

Phil Turnpenny, Policy Executive at TISA, commented:

"AI is already changing how people interact with financial services and how firms design and deliver products and support. As that develops, consumers need to remain properly protected, but financial services already has well-established frameworks to build on. Creating a separate set of rules for AI will not automatically lead to better outcomes and risks adding complexity for firms and slowing the adoption of technology that could improve services. Model contractual clauses for AI use could provide a much faster and more practical way to clarify accountability, liability, data use and governance between firms and third-party AI providers while the wider regulatory framework continues to evolve."

TISA also recommends that regulators:

• Establish a cross-regulator AI sandbox through the DRCF for use cases spanning financial regulation, data protection and consumer protection.
• Provide practical guidance, illustrative use cases, sprints and showcases to help firms understand how expectations apply in practice.
• Align with emerging international standards and supervisory frameworks, notably ISO42001, to reduce fragmentation and regulatory arbitrage.
• Treat consent as one safeguard among several, rather than a substitute for firms' responsibility to deliver fair outcomes.

Phil Turnpenny added:

"Flexibility for firms needs to be matched by meaningful choice for consumers where AI has a significant impact on them. People should be given clear, accessible information about how AI is being used and offered targeted opt-outs where appropriate. Those who prefer a non-AI option must not be disadvantaged as a result. Preserving consumer choice, accountability and trust will be essential for the industry to realise the benefits AI can offer."

ENDS.

Notes to editors

• A full copy of TISA's response to the DRCF call for input - Consumer interest and AI is available on request.
• DRCF's call for input Consumer interest and AI can be found here
• TISA is a not-for-profit membership organisation committed to improving the financial wellbeing of all UK consumers by working collectively with the financial services industry to deliver solutions and champion innovation, for the benefit of people, our industry, and the nation.
• TISA has approximately 260 member firms involved in the supply and distribution of savings and investment products and associated services. Members include the UK's major investment managers, retail banks, online platforms, insurance companies, pension providers, distributors, building societies, wealth managers, third party administrators, FinTechs, financial consultants, financial advisers, industry infrastructure providers and stockbrokers.