Financial Markets Authority CEO Samantha Barrass is asking financial services companies to share with the regulator what they’re experimenting with in regards to AI and what’s working and what’s not.
In a wide ranging speech to the Financial Services Council 2025 Conference last week, Barrass says one issue that is front of mind is the accelerating pervasiveness of technology in financial services.
She noted the FMA continued to see ever greater capability from generative AI, with the opportunities to lift productivity and effectiveness.
“Many firms have been talking to us about our expectations about AI. Our role is to strike balance: enabling innovation that improves outcomes for customers while maintaining trust, transparency, and integrity in the system.”
She says that used well, the FMA believes AI can make a positive impact on consumers, helping to lift financial literacy, lowering costs, and personalise services.
“But it must be deployed responsibly keeping the consumer impact front and centre, enabled by appropriate governance, risk management, controls and policies.”
…Tell us what’s working, and what isn’t. Let us know what it’s like trying to embed AI into legacy systems…
Barrass says the “ask here” is that financial services companies: “Share what you’re experimenting with. Tell us what’s working, and what isn’t. Let us know what it’s like trying to embed AI into legacy systems. And help us understand how we can best support responsible innovation.”
Stepped-up engagement with insurers
Another area Barrass touched on was noting the FMA has particularly stepped-up engagement with insurers in recent months.
“This reflects that for many insurers, this is the first time they have been regulated by the FMA, and the CoFI regime is new.
“It also reflects that new Insurance Contracts law is on the horizon. We are mindful of the need to balance quality over quantity of engagements as we work with insurers to navigate these changes,” she says.