MPs have called on the UK government to suspend a contract between the Financial Conduct Authority (FCA) and US spy-tech company Palantir, which will grant the firm access to highly sensitive financial regulation data. The Liberal Democrats described the deal as a 'huge error of judgment', while the Green party urged the government to block it over Palantir's links to former US President Donald Trump.
The FCA has hired Palantir to apply its AI systems to two years' worth of internal intelligence data to combat financial crime. Security-cleared Palantir staff will gain access to the FCA's 'data lake' during a 12-week trial, raising concerns among insiders about insufficient safeguards to prevent unintended exploitation of the data.
There are fears that sensitive FCA investigations into high-profile figures, such as banker Jes Staley and hedge fund boss Crispin Odey, could be accessed during the trial. The FCA has insisted Palantir will act only as a 'data processor', not a 'data controller', and will have to destroy data after the contract ends. The regulator will retain exclusive control over encryption keys for the most sensitive files, and data will be hosted solely in the UK.
Liberal Democrat Treasury spokesperson Daisy Cooper called for an investigation into the contract, stating: 'Awarding a contract for sensitive UK financial data to a Trump-aligned tech giant seems like a huge error of judgment.' Green party MP Siân Berry said companies like Palantir 'should have no place within UK government systems' and urged the government to block the contract to protect national security.
Palantir, founded by billionaire Peter Thiel, has secured over £500 million in UK contracts, including with the NHS, police, and Ministry of Defence. Its European boss, Louis Mosley, has sought meetings with MPs to address 'misconceptions' about its technology, denying claims that Palantir may use customer data for its own purposes.
Donald Campbell of tech fairness campaign Foxglove warned of a 'serious risk of lock-in', saying: 'The more Palantir is enmeshed in the UK's public services, the harder it may be to get them out.' Palantir said it was proud its software was being used to support the FCA's work.
