AI Compliance for Financial Services
Meet FCA, SEC, EU AI Act, and GDPR obligations for AI in financial advice, trading, and customer service.
Financial services firms face the most comprehensive AI regulatory framework of any industry: EU AI Act high-risk classification for credit and investment AI, FCA model risk guidance, MiFID II algorithmic trading requirements, and GDPR Article 22 for automated financial decisions. (A 2023 SEC proposal on AI conflicts of interest for investment advisers was formally withdrawn in June 2025 — no federal AI-specific SEC rule is currently in force, though general fiduciary and disclosure obligations still apply to AI-assisted advice.) Aegis Firma helps financial services firms manage the full AI compliance stack from $79/month.
AI Compliance Challenges for Financial Services
Regulations That Apply to Financial Services
EU AI Act Annex III — Credit & Investment AI
AI systems for creditworthiness assessment, investment decisions, and insurance pricing are high-risk under EU AI Act Annex III. Full technical documentation, bias assessment, human oversight, and EU database registration required.
FCA Model Risk Management (SS1/23)
FCA's SS1/23 supervisory statement requires firms to manage model risk systematically, including ML and AI models used in regulated activities. Governance, validation, and documentation standards apply.
SEC — General Fiduciary/Disclosure Duties (AI-specific rule withdrawn)
The SEC's 2023 proposed rule on AI conflicts of interest for investment advisers was formally withdrawn in June 2025 with no final rule adopted. Existing general fiduciary duty and disclosure obligations under the Advisers Act still apply to AI-assisted recommendations.
GDPR Article 22 — Automated Decisions
Automated financial decisions affecting EU customers require GDPR Article 22 compliance: right to human review, explanation of the AI logic, and opt-out mechanisms.
How Aegis Firma Helps Financial Services
Common Use Cases
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Frequently Asked Questions
How does FCA SS1/23 apply to AI models?
FCA SS1/23 applies to ML and AI models used in regulated activities. Key requirements: documented model governance framework; independent validation of AI models; ongoing monitoring for performance drift; clear accountability for model decisions; escalation procedures when models behave unexpectedly. Aegis Firma generates the governance documentation framework aligned to these expectations.