ICMA responds to Financial Stability Board Public Consultation on Sound Practices for Responsible Adoption of Artificial Intelligence (AI)
22 July 2026 ICMA’s AI in Capital Markets Working Group today published their response to the Financial Stability Board (FSB) public consultation on “Sound Practices for Responsible Adoption of Artificial Intelligence (AI)”.
ICMA’s consultation response builds on its consistent engagement with policymakers and regulators on AI in Capital Markets. The full response, along with previous consultation submissions from the AI in Capital Markets (AICM) Working Group, can be accessed on our website here.
Key points:
- ICMA members support the responsible adoption of AI within financial services and agree that AI oversight should be proportionate to the risk and materiality of each use case.
- ICMA supports a technology-neutral and flexible approach to AI governance, allowing frameworks to adapt as technologies evolve while maintaining robust risk management standards. Where possible, ICMA members encourage AI governance to be embedded into existing governance and risk management frameworks, rather than requiring separate AI-specific structures.
- ICMA members highlight that many risks stated in the report are not unique to AI applications (e.g. cybersecurity, data breaches, third-party dependency), whilst recognising that AI adoption can amplify existing risks and increase the surface area for vulnerabilities in organisations. They also encourage a clearer distinction between traditional AI and machine-learning applications and newer AI technologies, to ensure supervisory attention remains focused on the genuinely new or materially different risks.
- The proposed sound practices are broadly comprehensive and appropriate for senior management and board level individuals. However, greater emphasis should be placed on workforce readiness, skills development, training, and strategic workforce planning to support effective AI adoption. In the capital market, each business line will have different outputs and risk levels unique to their position, necessitating a devolution of responsibility into the relevant teams.
- The report would benefit from the inclusion of additional capital market case studies, such as using AI to extract information from bond documentation, enhance liquidity management, improve the accuracy of bond rating assessments, and make pricing predictions.
- ICMA encourages greater public-private collaboration, including through initiatives such as BIS Project Noor and CMORG, to foster a shared understanding of AI-related implications for financial stability and the broader financial system.
Contact:
emma.thomas@icmagroup.org
