UK Parliament’s Treasury Committee has published responses from the Bank of England, HM Treasury and the Financial Conduct Authority to its report on the use of artificial intelligence in financial services, with the Bank confirming plans to test the use of AI agents in financial trading markets and examine the risk of correlated “herding” behaviour. The Bank’s response follows the Committee’s recommendation for AI-specific stress testing and also aligns with the Committee’s view that the Financial Policy Committee should monitor HM Treasury’s use of the Critical Third Parties (CTP) Regime and its effectiveness in supporting UK financial stability, with the FPC expected to continue doing so. HM Treasury did not commit to bringing major AI and cloud providers into the CTP Regime before the end of 2026, while the Financial Conduct Authority indicated it will share examples of best practice for AI use with firms to help align AI deployment with existing rules. The Treasury Committee chair indicated the Committee will continue to monitor progress, citing the potential disruption to financial services from an outage at a major provider.
UK Parliament 2026-04-16
UK Parliament Treasury Committee publishes regulators’ AI responses as Bank of England plans AI-agent trading tests
The UK Parliament Treasury Committee has published responses from the Bank of England, HM Treasury and the Financial Conduct Authority to its report on artificial intelligence in financial services, including confirmation that the Bank plans to test AI agents in financial trading markets and assess correlated “herding” risks. HM Treasury did not commit to bringing major AI and cloud providers into the Critical Third Parties Regime before the end of 2026. The Financial Conduct Authority plans to share AI best practice examples with firms, and the Committee will continue to monitor progress and potential disruption from outages at major providers.