On Tuesday 25 March 2025, the UK Financial Conduct Authority (FCA) released strategy for the next five years (2025-2030). Their plan focuses on:
- Being a smarter regulator
- Supporting growth
- Helping consumers
- Fighting financial crime
Additionally, the FCA released its annual work programme 2025/26 on Monday, 14 April 2025, providing details of how it will deliver on the four strategic priorities outlined in the five-year plan.
The FCA is focusing on results rather than processes and plans to rebalance risks, deepen trust and improve lives.
This approach marks a shift compared to the FCA’s previous three-year strategy (2022-2025), which prioritised reducing and preventing serious harm, setting and testing higher standards, and promoting competition. We are now seeing the FCA aim to become more adaptable, tech-focused and efficient in how it regulates and interacts with firms as the industry grows.
A smarter regulator
The FCA is looking to take a more flexible approach to its supervision and wants more of the firms they regulate “to have direct contact points with the FCA” to provide better access to the regulator. As the conduct regulator of 42,000 firms, the FCA has a large task on its hands, but we expect many firms will appreciate this new, more direct access to the regulator.
Rather than detailed, firm-specific, two-year supervisory programmes for each of the largest firms it regulates, the FCA will provide “less intensive supervision for those demonstrably seeking to do the right thing”. It will focus market engagement on areas where harm is greatest and reduce the number of priorities.
The authorisation process can be lengthy, with the current FCA metrics for 2023/2024 showing that 95.5% of full Part 4A applications are completed within six. The regulator aims to simplify and digitise the way it asks firms to submit applications, making it easier for firms to apply and reduce follow-up requests.
The regulator also aims to take a more proportionate approach by only collecting only the data it needs. It has already identified three regular data returns it plans to cull, so firms can expect reduced reporting obligations. The launch of My FCA, a portal that gives firms a single point of entry to the FCA, is intended to make its interactions with firms more efficient
Support growth
The FCA will look at stripping out “redundant requirements” in areas like commercial insurance and asset management to continue focusing on the competitiveness of UK financial services.
It also aims to widen retail access to investment opportunities to ensure the UK financial services system contributes to the wider economy, with the aim of unlocking capital investment and liquidity.
The FCA is focusing on a “tech-positive approach”, as evidenced by its digital securities sandbox launch and the AI lab. The regulator wants to focus on outcomes rather than prescriptive new rules to support growth in these areas.
To support global cooperation and openness, the FCA will also establish a permanent presence in the U.S. and Asia-Pacific for the first time. Tash Miah will work from the British Embassy in Washington, D.C. to “advance UK–US financial services policy and regulatory cooperation and support financial firms in the U.S. to navigate UK regulation”. Similarly, Camille Blackburn will establish a regional office in the Asia-Pacific to support “financial services firms to navigate regulation to enter the UK market or raise capital and provide UK firms with support expanding into the APAC region.”
Help consumers
One of the FCA’s operational objectives is to protect consumers. Through the introduction of the Consumer Duty in 2023, in addition to various other initiatives such as the FCA’s multi-firm review of its guidance on the treatment of vulnerable customers in March 2025, the regulator wants to ensure products are fit for purpose and customers are treated fairly. To continue building consumer trust in financial products, the FCA will be driving better value for money in workplace pensions, reviewing mortgage affordability requirements, and changing regulation to encourage schemes to invest for longer-term returns.
To ensure customers are getting the information they need, the FCA will look to support individuals who currently do not access financial advice so they can “make the most of their pensions and invest with greater confidence” and keep the Consumer Duty at the heart of how customers are treated.
Fight financial crime
The FCA recognises that FCA authorisation can be used as a cover for crime and will focus its resources on those who seek to do so. By sharing intelligence and co-ordinating with domestic law enforcement and regulators, as well as international counterparts, the FCA aims to be a “good partner” for other agencies who tackle crime and remove gaps where criminals often hide.
The FCA will also drive awareness of investment and authorised push payment fraud and increasing alerts of potential scams to provide consumers with the tools they need to protect themselves.
Key takeaways
The FCA is setting out a bold new direction this strategy to improve the UK financial sector. This plan prioritises smarter, more flexible regulation, economic growth, stronger consumer protections, and a tougher stance on financial crime. Compared to its previous approach, the regulator is now more focused on outcomes, efficiency, and direct engagement with firms. Expect a more digital, streamlined experience—especially around authorisations and reporting. The FCA is also backing innovation, reducing red tape in key sectors, and expanding its global presence to help UK financial services remain competitive.
How we help
We can help you to navigate the evolving regulatory landscape while considering the complexity of your firm’s unique compliance requirements.
We help our clients with their regulatory programme through a combination of compliance advisory, innovative technology, and managed services. Our services and solutions include standard and customized compliance packages that address a variety of compliance needs, including UK asset management regulation, cybersecurity, ESG, and training solutions for financial firms.
Reach out to your ACA consultant, or contact us to find out how we can help transform your firm’s compliance program.