FCA 2026/27 Work Programme: Smarter Regulation, Stronger Outcomes

The Financial Conduct Authority (FCA) has published its Annual Work Programme for 2026/27, setting out how it will deliver the second year of its five-year strategy.

The direction is clear: a regulator focused on outcomes, using data and technology to act faster, reduce unnecessary friction for firms, and intervene earlier where harm is identified. The programme outlines four strategic priorities that will shape supervisory activity over the next 12 months:

• Becoming a smarter regulator
• Supporting growth
• Helping consumers navigate their financial lives
• Fighting financial crime

This is more than a roadmap – it signals how regulation is evolving and how firms will be assessed going forward.

Key Messages:

Outcomes-Focused Priorities
The FCA is doubling down on its outcomes-driven approach. Its four strategic themes – Smarter Regulation, Growth, Consumers, and Financial Crime – are designed to reinforce each other and deliver measurable results.

This signals a shift away from process-driven compliance towards demonstrable outcomes: deeper trust in markets, improved consumer resilience, and reduced harm. Firms should expect to be judged less on what they say, and more on what they deliver.

Investment in Innovation and AI
A defining feature of the programme is the FCA’s investment in technology. The regulator is embedding AI into its workflows using tools such as generative AI to analyse firm data, identify risks earlier, and accelerate decision-making.

Initiatives such as the “Supercharged Sandbox” and automated data feeds between firms and the FCA highlight a move towards real-time, data-led supervision.

Regulatory scrutiny will become faster, more predictive, and less reliant on manual processes. Firms will need to ensure their data quality, governance, and systems can keep pace.

Regulatory Simplification and Burden Reduction
The FCA is also focused on reducing unnecessary complexity. Planned actions include streamlining regulatory returns, expanding the “My FCA” platform, and simplifying elements of the Handbook.

There is a clear intent to balance regulatory effectiveness with efficiency removing friction where it does not add value. However, this is not a lowering of standards – expectations are becoming more targeted and outcomes-focused.

Supporting Growth and Market Competitiveness
Growth remains a central theme. The FCA is taking steps to unlock capital and improve market liquidity by reviewing potentially restrictive rules.

It is also strengthening its international presence to support UK firms expanding globally and to influence regulatory standards abroad.

Importantly, the FCA will clarify where retail-focused rules such as the Consumer Duty do not apply in wholesale markets. This provides greater confidence for firms to participate and take appropriate risks, while maintaining market integrity.

Consumer Duty and Better Customer Outcomes
Consumer protection remains a core priority. The FCA will continue to embed the Consumer Duty by publishing further guidance and examples of good and poor practice.

There will be increased scrutiny of areas such as product value, pricing, and claims handling particularly in insurance markets.

The message is clear: firms must demonstrate that customer outcomes are central to decision-making, not just compliance frameworks.

Market Integrity and Financial Crime Crackdown
Financial crime is a key area of focus, with an emphasis on reducing fraud and strengthening market integrity.

The FCA is investing in data and analytics to detect risks earlier and will continue to take assertive enforcement action against misconduct. Firms should expect increased scrutiny of AML controls, fraud prevention measures, and governance frameworks.

This is not limited to banks – every firm is expected to play an active role in safeguarding the financial system.

Notable Cross-Cutting Developments
Several broader changes reinforce the FCA’s forward-looking approach, including:

• Integration of the Payment Systems Regulator into the FCA
• Introduction of oversight for ESG ratings providers
• Reform of remuneration rules for solo-regulated firms

Collectively, these changes reflect a regulator that is adapting to a more complex, data-driven, and globally connected financial landscape.

FCA Expectations

The FCA expects firms to align their conduct and strategy with these priorities:

Embed an Outcomes-First Mindset
Firms must move beyond “tick-box” compliance and demonstrate tangible outcomes for customers and markets. Senior leaders are expected to take ownership of this shift.

Support Innovation—Responsibly
Innovation is encouraged but must be accompanied by strong governance and risk management. Firms using AI or launching new digital products should be prepared to evidence how these benefit customers and mitigate harm.

Stay Vigilant on Financial Crime
The FCA expects firms to act as active gatekeepers. This includes robust AML controls, transparent reporting, and a culture that deters misconduct.

Engage and Adapt
Firms should proactively engage with FCA communications and act early. Waiting for enforcement action is no longer acceptable. Leadership teams must ensure alignment between regulatory expectations and business strategy.

What Firms Should Do Next

Map FCA Priorities to Your Risk Framework
Assess how your current controls align with the FCA’s four strategic themes. Identify gaps, particularly in consumer outcomes, innovation governance, and financial crime controls.

Refresh Your Consumer Duty Approach
Reassess whether your products, communications, and services deliver genuine value. Use the FCA’s published good/poor practice examples to refine and evidence outcomes.

Leverage Technology for Compliance
Invest in data, automation, and AI to improve monitoring, reporting, and efficiency. Firms are expected to keep pace with the FCA’s own technological evolution.

Anticipate Regulatory Change
Prepare for upcoming developments, particularly in insurance pricing, product value, and broader market reforms.

Strengthen Financial Crime Controls
Review and stress-test AML frameworks against emerging threats. Ensure systems are both effective and proportionate.

Engage with FCA Initiatives
Participate in industry forums, sandboxes, and consultations where relevant. Ensure senior leadership is actively engaged with the regulatory agenda.

The FCA’s 2026/27 Work Programme sets a clear direction: regulation is becoming faster, more outcomes-focused, and increasingly data-led. 

Strong frameworks still matter but firms will be judged by what they deliver in practice.  There is a clear effort to support growth and reduce unnecessary friction. By engaging proactively, firms can meet expectations and leverage opportunities in this more responsive regulatory environment.

The challenge for 2026/27 is not simply to comply but to adapt.