FCA annual work programme 2025/26

Financial Conduct Authority’s annual work programme sets out the regulator’s priorities for the planned period and serves as a guide for financial market participants, government agencies and other interested parties. The programme links FCA’s strategy to specific actions that the regulator intends to implement over the coming period and reflects a combination of tasks aimed at improving effectiveness of supervision, promoting growth, protecting consumer interests and combating financial crime.

The programme is structured around four key strategic priorities. Each of these includes both new initiatives and ongoing projects aimed at achieving long-term goals.

Smart regulator: efficiency, data, oversight

First strategic priority focuses on FCA’s internal efficiency and how the regulator interacts with market participants. The programme includes measures to reduce burden on firms by reviewing the amount of data collected and waiving the number of regular reporting requirements where this can be done without compromising supervision.

My FCA platform is expanding as a single point of entry for firms to interact with regulators, including access to liability management, payments and reporting. A “flexi collections” feature is being introduced to simplify submission of one-off regulatory data. Digitisation of the authorisation process is also continuing, which should improve quality of applications and reduce processing times.

The supervisory model is shifting towards risk priorities, with more flexible approaches to market participants who demonstrate reliability and compliance with standards. Important part of this is increased use of data and analytics for early detection of potential harm and timely response.

Supporting growth of financial and economic system

The second priority focuses on competitiveness and innovation in the financial sector. FCA aims to strengthen the UK’s position as financial services hub by improving access to capital and liquidity, and simplifying a number of regulatory requirements to stimulate growth. The programme includes initiatives to review capital requirements for specialised trading firms, simplify commercial insurance rules and conduct research on the relationship between regulation and economic growth.

The regulator is working on new markets and instrumental regimes, such as new rules for prospectuses and platforms for public offerings without traditional prospectuses. The programme provides support for digital innovation, including testing artificial intelligence, working on open finance, and collaborating with payment regulators to implement a shared vision for a national payment system. FCA also seeks to reduce regulatory burdens and simplify requirements where Consumer Duty already provides high standards of consumer protection.

Particular attention is paid to start-ups and fast-growing companies: expanding support through regulatory sandboxes, developing pre-authorisation support for firms operating in wholesale markets, payments and crypto-assets, having dedicated authorisation process curator, and promoting “minded to approve” practices for promising projects. The regulator is also involved in international work and government initiatives to strengthen the UK’s status as a global financial hub.

Consumer protection and life cycle orientation

Third strategic priority relates to how FCA helps end users of financial products navigate and protect themselves from risks. The regulator continues to work on embedding Consumer Duty as the primary mechanism for protecting consumer interests and shares practices to improve quality of compliance with this standard. Particular attention is paid to the car loan market, where analysis of past commission schemes and possible consumer losses is carried out, with a view to consulting on compensation schemes.

Review of mortgage product rules continues, aimed at simplifying consumer experience and eliminating outdated guidelines, and extensive work is underway to develop services such as pensions dashboards to increase transparency of pension savings. FCA is also developing a regulatory framework for pay-later products and improving access to financial services for vulnerable groups.

Combating financial crime

Fourth priority reflects FCA’s efforts to protect the financial system from abuse and criminal activity. The programme includes measures to create new opportunities for detecting financial crime by integrating different data sources and analytics, strengthening cooperation with government and international partners on information sharing and countering money laundering schemes.

In addition, the regulator confirms its high level of activity in combating market abuse and its intention to use innovative technologies to detect illegal schemes, including monitoring Internet resources that promote unauthorised financial services. Proactive supervision of high-risk entities and improving effectiveness of sanctions remain an important part of this effort.

Budgetary framework and financial resources

FCA operates within budgetary constraints that are consistent with its expanding remit. The programme reflects an increase in annual funding, partly driven by growth in operating costs and investment in technology and data systems. Part of funds is planned to be allocated to development programmes, including digital platforms, liberalisation of regulatory processes and open finance projects. At the same time, it is predicted that proceeds from fines will reduce net burden on regulated firms when collecting payments for regulator’s services.

Context and trend development

FCA’s 2025/26 programme reflects continuing trend towards digital transformation of regulatory practices and greater engagement with financial market participants. This is consistent with the regulator’s current initiatives, such as examining the impact of advanced technologies — including artificial intelligence — on consumers and competition in retail financial services, as well as plans to develop new regulatory regimes for digital assets and modern payment systems.

At the same time, emphasis remains on a selective, risk-based approach to supervision and optimisation of internal procedures. FCA demonstrates its willingness to reduce excessive investigations and reallocate resources to cases with high potential impact, while maintaining robust level of enforcement and oversight of market conduct standards.

FCA’s annual work programme reflects a pragmatic shift from formal supervision to a more applied and selective regulatory model. The regulator aims to reduce its own costs and burden on the market, while strengthening control in areas of greatest risk to consumers and stability of the financial system. Focus is on data, digital tools and early detection of problems, rather than reacting after fact.

Programme shows that FCA increasingly views regulation as an economic policy tool. Supporting growth, developing capital markets and innovation are embedded in the regulatory agenda alongside consumer protection. At the same time, the regulator does not shy away from taking a tough stance on violations, especially in areas of financial crime and unfair practices.

For market participants, this means a need for more conscious interaction with regulators. Formal compliance with rules is no longer sufficient: understanding of risks, product quality and real impact on customers is expected. Overall, the programme sets out a framework in which FCA aims to be less bureaucratic but more demanding in terms of results and behaviour of financial companies.

FAQ

What is FCA’s work programme for 2025–2026?

Financial Conduct Authority’s work programme is an official document in which the regulator systematises and describes activities it intends to carry out during the planned period, in accordance with its own strategy. The programme includes priorities in four key areas: improving effectiveness of regulatory activities, promoting growth of the financial sector, helping consumers navigate financial services, and combating financial crime.

What are FCA’s plans for 2025?

FCA plans to focus on implementing tasks outlined in its annual programme: reviewing and optimising regulatory data collection and authorisation processes, more actively supporting innovation and growth of new firms, including assisting start-ups through Regulatory Sandbox and expanding pre-authorisation services. It also plans to strengthen consumer protection through implementation of standards such as Consumer Duty.

What is FCA’s strategy for 2026?

FCA’s strategy for the period up to 2026 stems from its multi-year plan and annual work programme. It continues to be built around the same fundamental priorities: intelligent supervision using data and technology, stimulating sustainable growth in UK financial services, strengthening consumer protection and enhancing measures against financial crime.

What is FCA Chief Executive’s letter for 2025?

The Chief Executive’s letter is formal communication from regulator to company executives, in which FCA sets out clear expectations, supervisory priorities and key risks for specific market segments or portfolio of firms. Such letters are not part of an annual work programme as a document, but serve as a tool for communicating tactical supervisory tasks and changes in strategic priorities. The letter contains guidance on which areas of firms’ activities and conduct regulator will pay particular attention to, and helps company heads plan their own activities in line with regulator’s expectations.