Rathi backs stronger powers use against system-wide financial risks
Nikhil Rathi, chief executive of the Financial Conduct Authority (FCA), called for faster intervention against system-wide risks at London's City Dinner on October 22, 2026. He pledged greater use of technology, intelligence and existing powers.
Existing powers beyond the perimeter
Rathi said the FCA would use existing powers more assertively against harm affecting markets within its remit, including risks originating outside its regulatory perimeter.
He cited AI-enabled market abuse, concentration, cross-border financial crime and cyber disruption.
Banks devote as much as 8 percent of their workforces to fighting crime, yet excessive data collection and fragmented intelligence impede results.
As over 60,000 professional services businesses enter the FCA's remit, chief operating officer Johan Sekora will lead efforts to detect actual money laundering beyond customer checks.
Deputy chief executive Sarah Pritchard will work with industry to reduce duplicative assurance and reconsider the three lines of defence.
Intelligence replaces duplicated effort
AI tools will help supervisors assess cases and process millions of data rows, leaving experts to judge manipulation and system-wide risks.
Rathi cited two recent operations with the Metropolitan Police, National Crime Agency and HM Revenue and Customs against suspected organised criminal gangs.
He also flagged a forthcoming FCA–Bank of England digital-assets roadmap linked to Chris Woolard's industry work.
Decentralised finance, 24/7 trading and parallel markets require wider partnerships, he said.
Outcomes over procedural safety
Rathi's central distinction was between more rules and more effective intervention.
He said cyber prevention cannot always work, making recovery investment necessary.
He also called for Parliament to ensure accountability across institutional remits as the FCA intensifies action on system-wide risks.
Source: Market integrity in a digital age
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