The Financial Conduct Authority (FCA) has announced it will ‘reform how it regulates’, aligning with the UK government’s overarching goal of driving economic growth.
In its newly published five-year strategy (2025–2030), the FCA outlined four main priorities: becoming a smarter regulator by improving processes and embracing technology; helping consumers by ensuring the right support is available; fighting crime by going further to disrupt criminals; and supporting growth by enabling investment and innovation.
Nikhil Rathi, Chief Executive of the FCA, said: “Our last strategy set high standards and bolstered our operational effectiveness. We are committed to going much further, delivering at pace to meet the scale of change we are facing over the next 5 years. This strategy sets out our priorities, how we’ll become more efficient and effective and make the choices that shape the financial system.
“Our four priorities reinforce one another and we look forward to collaborating with our partners as we become a smarter regulator, support growth, help consumers and fight crime.”
The term “growth” has become increasingly central to UK policymaking, driven by Prime Minister Keir Starmer’s mission to revitalise the economy. Since taking office, Starmer has worked to attract investment, identifying fintech and payments as key sectors in that effort.
This pro-growth focus has led to recent actions targeting regulatory reform. The Prime Minister recently stated that regulations “bloat and block meaningful growth”. One major outcome has been the merger of the Payment Systems Regulator (PSR) with the FCA – a move welcomed by financial institutions.
However, the FCA has indicated that this is only the beginning of broader regulatory change, stating it wants to “rebalance risk.”
Ashley Alder, Chair of the FCA, said: “We want to deepen trust in financial services and shift our collective attitude across financial services to risk. Too often, the focus has been on the risks of a decision taken rather than the lost opportunity of taking none. We want to change that so we can spur growth and improve lives.”
According to the strategy, one area of concern is how firms are assessed when applying to join UK markets. The FCA acknowledges that its risk-based approach, while necessary, can sometimes set the bar too high and deter new investment.
Another concern is market volatility, especially with the growing use of AI in financial services – a trend that, while potentially transformative, also introduces new layers of unpredictability.
Consumer risk is also a key focus, particularly in how individuals invest in stocks, shares and other financial products.
While these risks remain critical, the FCA’s new strategy hints at a willingness to shift slightly toward a more risk-tolerant approach to support growth and innovation.
Rathi concluded: “We are ambitious for the future and committed to enabling a fair and thriving financial services market for the good of consumers and the economy.”
