A smarter regulator
- Digital and data capabilities - investment in AI teams and capabilities, building readiness for quantum computing and advancing the Supercharged Sandbox[1]. Examples are integrating AI into regulatory workflows and using generative AI to review documents received from firms.
- Reduction in unnecessary burdens - authorisation timelines further reduced and an increase in the number and range of applications submitted through simplified and digitised forms. The FCA will:
- improve its methods of gaining feedback from firms.
- work with the Government and regulatory partners to modernise the redress system.
- increase proportionality of the Senior Managers Regime.
- remove data returns that are no longer needed and reduce the requirement for ‘nil’ returns.
- migrate more data requests to My FCA to bring most regulatory tasks into one place.
- use a sandbox environment to test data feeds between itself and participating firms.
- Purposeful, proportionate and predictable regulatory model - simplifying rules where appropriate and making them more accessible through the new Handbook website. The FCA will adapt its supervisory approach to increase the number of firms it has regular touchpoints with. It will be more coordinated when communicating and engaging with firms, including setting out priorities by sector.
- Efficient and effective operations - improving planning capability and using data analytics and digital tools.
Supporting growth
- Increased competition - unlocking capital investment and liquidity through consulting on the pension charge cap to give access to a broader range of asset classes, making the rules for alternative investment fund managers more proportionate and reforming capital requirements for solo-regulated firms. The FCA will:
- simplify the framework for the issuance of, and investment in, securitisations.
- establish a bonds consolidated tape and progress one for equities.
- identify and consider how to remove barriers to scaling finance for climate solutions.
- support mobilisation of defence investment, prioritising defence-focused funds applying for authorisation.
- set clearer standards for where the Consumer Duty and retail protections do not apply.
- continue implementing pensions value for money frameworks.
- consult (with the PRA) on a proportionate regulatory regime for captive insurance.
- review aspects of the rules for companies raising capital, including a review of the Disclosure and Transparency Rules.
- A more productive and innovative FS industry - to support digital innovation, the FCA will:
- develop the regulatory framework for open banking.
- publish its open finance roadmap and lead a taskforce to prioritise use cases.
- support the issuance of UK stablecoins.
- progress with its roadmap on fund tokenisation and issue guidance.
- support the Dematerialisation Market Action Taskforce.
- support the pensions dashboard programme.
- launch and process applications for new crypto asset-regulated activities.
- explore options to speed up bereavement insurance claims.
- Sustained UK economic growth - to support firms to start up and grow, the FCA will speed up IPO applications by proposing to remove the 7-day research waiting period. The FCA will develop a provisional licence regime alongside the Government to give firms time-limited permissions to operate in a controlled environment as they work to meet the threshold conditions. The joint FCA and PRA Scale-up Unit will be opened to a second cohort of solo-regulated firms. The FCA will also conduct a review into how its regulation can help SMEs to access finance. To improve exports and inward investment, the FCA will expand its overseas presence and involvement in the G20 Presidency, support in trade negotiations and implement a regime for ESG ratings. It will support UK participants to adopt a trade plus 1 day securities settlement cycle and reform remuneration rules for solo-regulated firms.
Helping consumers navigate their financial lives
- To withstand a change in circumstances or financial shock - introducing regulation for Deferred Payment Credit (DPC) / Buy Now Pay Later (BNPL), including affordability assessments, a temporary authorisation regime for existing firms, a review of the high-cost credit price gap and new rules to improve consumers’ credit information. The FCA will promote financial inclusion and capability by supporting informed investment decisions and advancing the Government’s Financial Inclusion Strategy. It will explore different methods of increasing contents insurance uptake for social renters, look at how travel insurance underwriting decisions are reached for those with pre-existing conditions and support a Fair4All Finance pilot of a small sum personal loan product. The FCA will undertake a multi-firm review of smaller payment firms on the treatment of vulnerable customers.
- Encourage saving and investing for later life - introducing a framework to assess the long-term value of workplace pension products, reforming pension requirements with focus on interactive digital planning tools and strengthening collaboration with the Government and The Pensions Regulator (TPR). For investments, the FCA introduced targeted support through the Advice Guidance Boundary Review with consultation on further reforms to encourage simpler advice, clearer disclosures, innovative risk communication and wider consumer access to investments.
- More positive experiences with financial services - the FCA will:
- provide guidance on meeting Consumer Duty obligations by highlighting good and poor practice and clarifying how the Duty applies to wholesale firms.
- evaluate the effectiveness of the access to cash regime.
- advance mortgage policy by expanding access for first time and underserved buyers, supporting later life lending, encouraging innovation and supporting digitalisation in the house buying process. The FCA will look to further support victims of economic abuse, improved consumer understanding of climate and flood risk and review standards for debt consolidation.
- progress insurance work (as set out in its response to Which?) by analysing consumer outcomes across sales processes, improving understanding of cover and considering claims outcomes as part of a post-implementation review of the value measures rules. The FCA will review how home and travel insurance firms oversee third‑party claims handling. The pure protection market study will be concluded. The FCA will also monitor annual percentage rates in premium finance.
- leverage insights from the innovation hub to identify good practice.
Fighting financial crime
- The work is not as closely linked to each individual strategic outcome and, for the most part, the FCA will continue with its existing work. The FCA lists the activities that it will focus on, starting with its flagship financial crime conference, the integration of multiple datasets and support for the development and adoption of new technologies, including RegTech solutions.
- For online safely, the FCA will create a single, end-to-end, intelligence-led service to spot and stop harmful financial promotions. As part of the FCA’s work, it will test controls of social media platforms and search engines to prevent and remove illegal content and use data/tech to identify those promoting unauthorised financial services. The FCA referenced the upcoming fraudulent advertising codes of practice with Ofcom and joint action with domestic and international partners against illegal content online.
- The FCA highlighted its engagement with partners, such as the Office for Professional Body Anti-Money Laundering Supervision, as it prepares for its Anti-Money Laundering (AML) remit to expand.
- The FCA will explore more proportionate, streamlined approaches to Know Your Customer (KYC), particularly on smaller transactions.
Across the themes, the FCA is progressing several cross-cutting projects:
- Consolidating the responsibilities of the Payment Systems Regulator (PSR) into the FCA.
- AML supervisory reform which will make the FCA the AML supervisor for legal, accountancy, and trust and company service providers (approx. 60,000 firms).
- Motor finance redress with the FCA due to set out its approach.
In summary, the FCA’s annual work programme 2026-27 focuses on becoming a smarter regulator, supporting growth, improving consumer outcomes and strengthening financial crime controls.
Firms should assess how these priorities impact their strategy, operations and compliance frameworks.
Next steps
To speak to a member of our Finance team on how the FCA work programme could impact your firm, get in touch via the form below.
References
[1] The Supercharged Sandbox is an enhanced version of the FCA’s regulatory sandbox, designed to help firms safely test and develop advanced, data‑driven financial innovations – particularly those using artificial intelligence (AI) – in a controlled regulatory environment.
Key contacts
Sarah Ouarbya Partner - Risk and Regulatory Consulting - London
Jessie Jones Director - Risk and Regulatory Consulting - Leeds
Christos Doumas Director - Conduct Risk and Regulatory - London
31 Mar 2026
Motor Finance Redress Scheme final publication
The Financial Conduct Authority (FCA) published its final Motor Finance Consumer redress scheme on 30 March, marking a pivotal development for lenders and dealers/brokers in the motor finance sector. This scheme introduces several significant operational and methodological changes, reshaping the landscape of consumer compensation for historic motor finance commission arrangements.
28 May 2025
Financial Conduct Authority work programme 2025-26
FCA Unveils 2025/26 work programme to enhance regulation, support growth, aid consumers, and combat financial crime.
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