The Financial Conduct Authority (FCA) has recently outlined a transformative agenda to bolster economic growth and enhance the UK’s standing as a leading financial center.
Through a combination of regulatory reforms, innovative initiatives, and a rebalanced approach to risk, the FCA is working to create a more dynamic and competitive financial services sector.
Two key updates—a statement on its commitment to growth and a speech by Simon Walls, Executive Director of Markets, delivered at the Global Management Summit 2025—shed light on the FCA’s ambitious plans to support businesses, attract investment, and foster innovation while maintaining consumer protections.
These efforts align with the UK government’s broader objective to stimulate a lackluster economy, projected to grow at just 1% in 2025.
In its June 12, 2025, statement, the FCA reaffirmed its dedication to fostering economic growth and a thriving financial services sector.
Central to its five-year strategy (2025-2030) is the integration of growth as a core priority, alongside consumer protection, crime prevention, and operational efficiency.
The FCA has already taken concrete steps to reduce regulatory burdens, such as streamlining data requests, retiring outdated supervisory documents, and paring back its insurance rulebook.
These measures aim to lower compliance costs for firms, enabling them to allocate resources toward innovation and expansion.
Additionally, the FCA is reforming redress mechanisms to provide greater certainty for both consumers and businesses, addressing concerns raised by the House of Lords Financial Services Regulation Committee about regulatory uncertainty deterring investment.
A flagship initiative is the introduction of the Private Intermittent Securities and Capital Exchange System (PISCES), a new private stock market set to launch later in 2025.
PISCES will enable trading of shares in private companies, addressing the growing demand for liquidity in unlisted firms.
By allowing institutional investors, high-net-worth individuals, and company employees to trade shares intermittently, PISCES aims to connect early-stage businesses with investors eager to support growth.
Simon Walls emphasized that this “bold design rebalances risk,” harking back to the risk-taking spirit that established the UK as a global financial hub.
The platform, developed through a financial markets infrastructure sandbox, will allow companies to vet investors, ensuring alignment with their strategic goals while offering investors access to promising startups.
In his June 10, 2025, speech at the Global Management Summit, Walls underscored the FCA’s philosophy of shifting from pre-emptive regulatory checks to a model emphasizing action and disclosure.
This approach is evident in reforms to the UK’s listings regime, prospectus rules, and the introduction of PISCES.
The FCA is also exploring changes to the Senior Managers and Certification Regime (SMCR), prudential rules, and remuneration policies to make it easier for financial firms to operate.
Walls highlighted that these reforms aim to drive innovation, finance infrastructure, and support employment, ultimately benefiting UK households.
However, he acknowledged that regulation alone cannot manufacture trust or growth, emphasizing the need for collaboration with industry and government.
The FCA’s initiatives have garnered support from policymakers, with Economic Secretary to the Treasury Emma Reynolds praising PISCES as a collaborative effort to strengthen UK capital markets.
Yet, challenges remain.
The House of Lords has warned that risk-averse regulation and overlapping remits, particularly with the Financial Ombudsman Service, impose costly burdens on firms, potentially deterring foreign investment.
The FCA has responded by committing to review these concerns and refine its approach to ensure proportionality and predictability.
Additionally, the FCA is embracing technological innovation to support growth.
Its partnership with Nvidia to launch a “Supercharged Sandbox” in October 2025 will allow financial firms to experiment with AI in a controlled environment, addressing risks like privacy and fraud while fostering innovation.
This aligns with the FCA’s broader commitment to digitization and responsible AI adoption, as outlined by Chief Data Officer Jessica Rusu.
By rebalancing risk, streamlining regulations, and introducing platforms like PISCES, the FCA is positioning the UK as an attractive destination for investment.
These efforts, if successful, could enhance liquidity, support startups, and drive sustainable economic growth, reinforcing the UK’s status as a global financial leader.