AI Regulation Tracker · UK (BoE / PRA / FCA) · Consultation

What does DP5/22 say about AI in banking?

Published Oct 11, 2022 · Last reviewed Aug 26, 2026

DP5/22 is the joint Bank of England, PRA and FCA discussion paper published on 11 October 2022 that asked whether the UK's existing financial regulation is sufficient for AI and machine learning. It set out how current rules — the Senior Managers regime, model risk management, operational resilience, outsourcing, data protection and conduct rules — already apply to AI, and asked whether a regulatory definition of AI or new AI-specific requirements were needed. Responses closed on 10 February 2023 and were summarised in FS2/23.

DocumentDP5/22Discussion Paper 5/22: Artificial Intelligence and Machine Learning
Issued byBank of England, Prudential Regulation Authority, and Financial Conduct Authority
TypeConsultation
StatusFinal
PublishedOct 11, 2022
Comment deadlineFeb 10, 2023
Applies toAll PRA- and FCA-regulated firms, including banks, building societies, investment firms and insurers (a discussion paper, not a rule)
Official sourcebankofengland.co.uk
Use casesAI governance (general) · Model risk management · Fair lending & discrimination · Third-party & vendor AI · Data & privacy

What are the key points of DP5/22?

  • Joint BoE/PRA/FCA paper following the AI Public-Private Forum's February 2022 final report.
  • Maps AI use to existing frameworks: SM&CR accountability, model risk management, operational resilience, third-party/outsourcing rules, Consumer Duty and conduct rules, and UK GDPR.
  • Asks whether a regulatory definition of AI would help; respondents later said no.
  • Raises data risks (bias, fairness, protected characteristics), model risks (explainability, robustness) and governance risks as the three main risk clusters.
  • Explicitly technology-agnostic: considers whether AI-specific regulation is needed rather than proposing it.
  • Comment period closed 10 February 2023; 54 responses received.

What did DP5/22 change for banks?

DP5/22 is the origin of the UK's current posture. It framed AI as a question of whether existing rules suffice, and the answer that came back through FS2/23 — that they largely do — has anchored the BoE, PRA and FCA's technology-agnostic approach ever since. For banks it remains the clearest official map of which UK rulebooks an AI system falls under.

Did DP5/22 propose new AI rules for UK banks?

No. It was a discussion paper asking whether existing regulation was sufficient and how it might evolve; it made no policy proposals.

Which UK rules did DP5/22 say already apply to AI?

The Senior Managers and Certification Regime, model risk management expectations, operational resilience and outsourcing rules, conduct rules including the Consumer Duty, and UK data protection law.

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