FCA Strategy 2025 – 2030: Priorities, Opportunities, and What It Means for Firms

The Financial Conduct Authority (FCA) has published its strategy for 2025–2030, which outlines a visionary roadmap for the future of financial services in the UK. This comprehensive plan is designed to deepen trust, rebalance risk, support growth, and improve lives. Here are some of the key highlights:

Key Highlights

FCA Vision: The FCA’s vision is to ensure the UK remains a world leader in financial services by fostering innovation, serving untapped domestic demand, and exporting excellence. This vision is built on four key pillars:

1. Deepening Trust: By being an efficient and effective regulator, the FCA aims to build confidence in financial firms and the services they provide.
2. Rebalancing Risk: Encouraging informed risk-taking to support growth and help the country thrive amidst challenges.
3. Supporting Growth: Enabling investment, innovation, and ensuring the competitiveness of UK financial services.
4. Improving Lives: Helping consumers navigate their financial lives with better support and information.

FCA Priorities: The FCA has identified four main priorities that will guide their actions over the next five years:

1. Supporting Growth: By harnessing technological advances, financial services can improve competitiveness, attract new customers, and ensure markets function better.
2. Fighting Crime: Disrupting criminals and supporting firms to be an effective line of defence against financial crime.
3. Helping Consumers Navigate Their Financial Lives: Boosting trust, product innovation, and ensuring consumers have the right information and support.
4. Being a Smarter Regulator: Improving processes and embracing technology to become more efficient and effective.

The strategy also outlines a focus on fair value and competition, including pure protection insurance, and ensuring fair pricing for the 20 million people who pay monthly for cover.

Opportunities and Challenges to 2030: The FCA recognises several key areas that will shape the future of financial services:

•  Technology: AI and technological advancements offer transformative potential.
• Growth: Financial services support economic growth by providing capital and managing risk.
• Global Uncertainty: Increased market volatility requires adaptive financial services.
• Financial Resilience: Competitive financial services can help individuals improve their financial lives.
• Demographic Change: An ageing population will reshape society, and financial services must help manage this shift.

A Smarter Regulator: The FCA is committed to streamlining supervision, investing in technology, and simplifying authorisation processes to become more efficient and effective.

Enabling Economic Growth: Ensuring UK financial services contribute to the wider economy through competitiveness, innovation, and productivity.

Helping Consumers: Driving better value for money in pensions and insurance, and ensuring consumers have the support and information needed to make informed decisions.

Smart Data Revolution: Prioritising seamless account-to-account payments and Variable Recurring Payments and supporting innovation through greater data sharing.

Fighting Financial Crime: Disrupting crime and protecting consumers, while working with firms and other agencies to prevent illicit activities.

International Regulator: Maintaining and improving the UK’s position as a global financial hub, with a presence in the US and Asia-Pacific.

Operational Approach: The FCA will be open, curious, collaborative, and resourceful, ensuring transparent decision-making and clear communication.

What Firms Should Consider Doing:

Firms may want to consider taking the following actions in response to this strategy:

Embrace Technological Advances:

• Invest in AI and machine learning to improve competitiveness and efficiency.
• Explore opportunities to develop and deliver innovative, tailored services.

Enhance Compliance and Risk Management:

• Align with the FCA’s focus on rebalancing risk by adopting robust risk management practices.
• Ensure compliance with new regulatory standards and reforms.

Support Consumer Financial Resilience:

• Develop products that help consumers navigate their financial lives, offering better value and support.
• Innovate to provide long-term returns and fair value.

Strengthen Anti-Crime Measures:

• Invest in advanced technology to detect and prevent financial crime.
• Collaborate with the FCA and other agencies to disrupt criminal activities and protect consumers.

Improve Operational Efficiency:

• Streamline processes and digitise where possible to enhance efficiency.
• Engage with the FCA’s new digital platforms for easier management of regulatory obligations.

Focus on Growth and Competitiveness:

• Leverage FCA initiatives like the digital securities sandbox and long-term investment funds to unlock growth.
• Review and adapt to changes in disclosure requirements.

Enhance Collaboration and Communication:

• Participate in industry discussions and initiatives to help shape the future of financial services.

Prepare for Global Uncertainty and Demographic Changes:

• Develop strategies to manage market volatility and adapt to demographic shifts.
• Offer products that cater to an ageing population and support financial resilience.

How We Can Help

We are well positioned to help your firm navigate and implement the changes needed to align with the FCA’s strategy. This includes providing comprehensive assessments to ensure your practices meet new regulatory standards and reforms, as well as supporting the development and implementation of robust risk management strategies to balance risk and drive growth.