"We’re setting out how we’ll go further to help firms that want to join our markets with greater support for the application process and to test innovative products."
- Nikhil Rathi, CEO of the FCA
For 2025, the Financial Conduct Authority (FCA) intends to be a “smarter regulator,” making it easier for firms to test innovative products and supporting new firms applying for regulatory approval as part of its work programme for 2025/26.
Firms using the FCA’s Regulatory Sandbox to test innovative products will be provided with an authorisation case officer from the start. The regulator said this will “help the right firms get authorised and bring innovative products and services to market faster.”
Furthermore, the industry watchdog’s pre-application support service has been extended to all wholesale, payments, and cryptoasset firms.
The FCA will enable a new innovative market for private companies to improve their ability to grow and scale up. The Private Intermittent Securities and Capital Exchange System, also known as PISCES, offers investors greater access to investment opportunities in private companies.
Meanwhile, the regulator’s AI Lab will work with more firms to deepen understanding and support the use of artificial intelligence (AI) solutions to “drive growth and competitiveness in financial markets.”
The FCA will also let more firms know it is ‘minded to approve’ applications for authorisation when it thinks they can meet the required standards. This will allow firms to seek investment with confidence that they can secure regulated status.
In terms of consumers, the industry watchdog is set to create a new regulatory framework, providing individuals with access to financial advice so they can make informed decisions. To fight financial crime, the FCA will build a new data-led detection capability to increase identification and take action.
Buy Now Pay Later (BNPL) products will be brought under the FCA's regulatory regime.
The regulator has also published the consultation on its fees and levies for the year ahead. It has proposed an increase to minimum and flat rate fees, as well as application fees, by 2.5%, which it states is “in line with the increase in ongoing regulatory activities.”
Nikhil Rathi, CEO of the FCA, said, “We’re committed to being a smarter regulator – one that supports growth, helps consumers and fights crime. Our annual work programme details what we will deliver to achieve these goals.
“We’re setting out how we’ll go further to help firms that want to join our markets with greater support for the application process and to test innovative products.”
