We asked the FCA and Ofcom how AI should be used to review financial promotions. Here's what they said.

In January 2025, Adclear submitted a query to the DRCF AI and Digital Hub asking the two regulators that govern financial promotions in the UK — the FCA and Ofcom — how AI-powered compliance review should work in practice. Their joint response is now published as an official case study. This page summarises what we asked, what they answered, and what it means for compliance teams.

Why we went to the regulators directly

Most conversations about AI in compliance run on assumptions. Vendors assume their tools are acceptable. Compliance teams assume the regulator would object. Nobody asks.

So we asked. The DRCF AI and Digital Hub — a pilot run by the Digital Regulation Cooperation Forum — let innovators put questions about AI and digital regulation directly to UK regulators. Adclear submitted a query about using AI to assess advertising and marketing content against compliance standards, and on 23 January 2025 the Financial Conduct Authority and Ofcom responded jointly.

The full response is published (anonymised as "Business C") on the DRCF website: DRCF Case Study: Advertising Financial Promotions — Response from FCA and Ofcom (PDF).

What we asked

Our query put four questions to the regulators:

1. How can firms keep compliance standards consistent when the same financial promotion runs through digital channels (FCA remit) and broadcast media (Ofcom remit)?
2. Where do FCA and Ofcom rules intersect or diverge, and how should an AI compliance platform handle the differences?
3. What do both regulators expect on the use of AI for compliance decisions — specifically, what level of human oversight is required when AI-generated outputs are used to evaluate and approve marketing materials?
4. How can a firm demonstrate its AI models and processes align with both FCA and Ofcom standards across multi-channel campaigns?

What the regulators told us

1. FCA financial promotion rules are media neutral

The FCA's rules apply to a financial promotion wherever it appears: social, digital, TV, radio. A promotion must be clear, fair and not misleading regardless of channel, and firms that approve promotions carry responsibility for them under FCA rules. If an advert also falls under Ofcom's broadcast remit, the firm has to satisfy both regimes — the onus sits with the firm, not the channel.

2. Broadcast has its own layer of rules

For TV and radio, the BCAP Code (written by BCAP, enforced by the ASA, with Ofcom holding backstop powers) includes a dedicated chapter on advertising financial products. The Ofcom Broadcasting Code adds rules on commercial references in TV (Section 9) and radio (Section 10) programming. The regulators were clear that these codes complement, rather than replace, FCA regulation.

3. The Online Safety Act adds a third regime

The OSA requires online platforms to protect users from illegal financial promotions, with offences under the Financial Services and Markets Act 2000 listed as priority offences. Fraudulent advertising duties for larger "categorised" services are being phased in. For anyone distributing or approving promotions that end up on social platforms, this regime now sits alongside FCA and Ofcom rules.

4. AI is allowed. Responsibility isn't transferable.

This is the answer that matters most for anyone evaluating AI compliance tools. Neither regulator prohibits the use of AI to review advertising and marketing content. But both were explicit that using AI does not move responsibility off the firm:

• The FCA's rules "do not generally require or prohibit the use of any form of technology" — but if a firm uses AI to review content, it remains the firm's responsibility to ensure that content complies.
• Several FCA rules clearly require human involvement, including the Senior Managers and Certification Regime (SM&CR), the systems and controls requirements in SYSC, and record-keeping rules for financial promotions in COBS 4.11.
• Ofcom regulates services, not underlying technologies — its focus is outcomes for consumers, whatever tools produced them.

In short: human in the loop is not optional. AI can do the heavy lifting on review and analysis, but accountability stays with named individuals inside the regulated firm.

5. Regulators don't certify compliance tools — and won't

The FCA and Ofcom do not approve or endorse compliance software, including ours. Any vendor implying regulator sign-off on their tool is misrepresenting how UK regulation works. What firms can do is ensure their specific use of an AI compliance solution is consistent with the rules that apply to them — which differ firm to firm.

What this means if you're reviewing financial promotions

The regulators' response confirmed the model Adclear is built on: AI accelerates compliance review, humans retain oversight and accountability. Our platform assesses marketing content against FCA and broadcast advertising standards and makes recommendations — your compliance team makes the decisions, with a full record kept for COBS 4.11 purposes.

If your promotions cross channels — paid social, TV, radio, influencer — you're operating under at least two regulatory regimes and possibly three. Getting a consistent review standard across all of them is exactly the problem we asked the regulators about.

Book a demo to see how Adclear applies these standards to your marketing content.

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FAQ

Can regulated firms use AI to review financial promotions? Yes. The FCA and Ofcom confirmed in their DRCF response that neither regulator prohibits AI for compliance review. The firm remains fully responsible for the compliance of any content, however it was reviewed.

What human oversight does the FCA require when using AI for compliance? The FCA pointed to SM&CR personal accountability, SYSC systems and controls requirements, and COBS 4.11 record-keeping rules as areas where human involvement is clearly required. Firms must be satisfied their specific use of AI is consistent with the rules that apply to them.

Do the FCA or Ofcom approve AI compliance tools?No. Neither regulator approves or endorses compliance software or the processes of advertisers. Their role is to set and enforce standards; responsibility for compliance sits with the regulated firm.

What is the DRCF AI and Digital Hub?A pilot service run by the Digital Regulation Cooperation Forum (comprising the FCA, Ofcom, ICO and CMA) that let innovators submit queries about AI and digital regulation and receive informal joint advice from the relevant regulators.

Which rules apply to a financial promotion that runs on both social media and TV?FCA financial promotion rules apply across all channels. TV and radio adverts additionally fall under the BCAP Code and Ofcom Broadcasting Code. Content on large online platforms is also touched by the Online Safety Act's illegal content and fraudulent advertising duties.

The DRCF response is informal advice, specific to the circumstances described in Adclear's query, and represents the regulators' position as at 23 January 2025. It is not an endorsement of any product. Read the full case study on the DRCF website.

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