Woofun AI reports that the UK Financial Conduct Authority identifies a critical regulatory gap where AI-driven financial advice operates outside current oversight. Sheldon Mills, Executive Director of Strategy and Competition, highlighted that one-fifth of UK adults now permit large models to manage savings or borrowing, leaving them without recourse for losses.

The agency’s report urges an urgent review of these risks and proposes expanding legislative power to supervise major technology firms, including Anthropic, OpenAI, Amazon, Google, and Microsoft, via a "key third-party" mechanism. It also recommends launching public AI-assisted financial literacy services.