Artificial intelligence, virtual assets, and corporate governance: results of the meeting between NSSMC and TheCityUK

The NSSMC and TheCityUK discussed further cooperation and the exchange of expertise in the areas of artificial intelligence, digital assets, corporate governance, and the Commission’s institutional development.

One of the key topics of the meeting was corporate governance. The NSSMC continues to collaborate with the OECD on updating approaches in this area and drafting the new Corporate Governance Code. TheCityUK confirmed its readiness to continue supporting these efforts.

Separately, the participants discussed the use of artificial intelligence in the work of the NSSMC. The Commission is considering the possibility of using AI agents to automate routine processes that are currently performed manually by employees. For example, this includes the preparation and distribution of documents to market participants.

It is important, however, that such solutions operate in a secure environment and do not create any risks to privileged information.

“We are currently considering how to use AI in our own work — primarily to automate routine processes. At the same time, it is important for us to understand how this technology is changing the financial market itself and what new challenges it creates for the regulator. That is why the experience of countries where such solutions are already being used in practice is important to us,” said NSSMC Commissioner Maxim Libanov.

TheCityUK, on its side, shared insights from the UK financial sector, where AI is already bringing new practical challenges for financial institutions.

“Artificial intelligence is rapidly moving from the experimental stage to real-world application in the financial sector. New questions are already arising: how to verify that an AI agent is truly acting on behalf of the client, who is responsible for the agent’s actions, and how financial institutions can protect themselves from new risks. We are ready to share this practical experience with our Ukrainian colleagues,” said Nicola Watkins, Executive Director at TheCityUK.

Another important topic of discussion was virtual assets and the tokenization of real-world assets (RWAs). The meeting participants discussed how to determine the legal status of tokenized assets and where the line is drawn between them and financial instruments.

The sides also exchanged views on international approaches to regulating tokenized assets. TheCityUK discussed its work with US and EU partners to ensure that the approaches of different jurisdictions are more compatible.

Separately, the meeting participants discussed the functional audit of the NSSMC supported by the World Bank.

The NSSMC and TheCityUK will continue to exchange expertise and work on specific areas of cooperation.