Agentic AI
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Respondents to the Bank of England and FCA's 2026 AI Survey Most Often Relied on Vendor Assurance and Contracts to Understand High-Materiality Third-Party AI
In a report published on October 26, 2026, the Bank of England and the Financial Conduct Authority describe their fourth survey of artificial intelligence in UK financial services, and say third-party implementations made up a larger share of the AI systems firms considered highly material than in 2024.
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Regulators and standard setters Audit and assurance
The FRC Says Some Audit Firms Are Now Deploying Generative AI to Perform Audit Procedures and Generate Audit Documentation
In its Annual Review of Audit Quality 2026, dated July 2026, the UK's Financial Reporting Council says some firms are deploying generative AI tools to perform audit procedures and generate audit documentation, plans a thematic review of how the largest firms govern its use, and says limited use of GenAI on audits was observed in the past year.
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The FSB Describes Effective Human Oversight of AI at Financial Institutions as Meaningful, Not Nominal
On October 15, 2026, the Financial Stability Board published its final report on sound practices for financial institutions' responsible adoption of AI. Effective human oversight, it says, is "meaningful," as opposed to oversight that is nominal or driven by what it calls tick-the-box compliance.
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Not Within the Scope of This Guidance: Generative AI in the US Bank Regulators' Model Risk Guidance of April 2026
On April 17, 2026, three US bank regulators issued revised guidance on model risk management. Generative AI and agentic AI models, a footnote says, "are not within the scope of this guidance."
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Regulators and standard setters Audit and assurance
Risks, Mitigations and Illustrative Examples: The FRC's Guidance on Generative and Agentic AI, March 2026
Guidance dated March 2026 from the UK's Financial Reporting Council takes up generative and agentic AI in audit. It is aimed at "the central technical teams within audit firms who are responsible for the development of generative and/or agentic AI tools and supporting methodology."
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Auditor-in-Control Checkpoints: What EY UK's 2025 Audit Quality Report Says About AI, October 2025
In its 2025 Audit Quality Report, EY UK says its AI capabilities are "risk-managed, tested and approved against principles in this framework, then released with clear guidance and auditor-in-control checkpoints," the framework being the firm's own. The claims are the firm's.
