FCA annual work programme 2026/27: A strategic overview

On 26 March 2026, the Financial Conduct Authority (the FCA) published its annual work programme for 2026/27, marking the second year of its five-year strategy to "deepen trust, rebalance risk, support growth and improve lives", see our article on that here. The programme is structured around four interconnected strategic priorities:

1. Becoming a smarter regulator;
2. Supporting growth;
3. Helping consumers navigate their financial lives; and
4. Fighting financial crime.

The 2026/27 work programme signals the FCA's continued commitment to becoming a more efficient and proportionate regulator whilst supporting UK economic growth and competitiveness. Key developments include the expansion of the FCA's remit to supervise anti-money laundering compliance for legal, accountancy, and trust and company service providers, the consolidation of the Payment Systems Regulator (PSR) into the FCA, and the commencement of Buy Now Pay Later (BNPL) regulation from July 2026. The FCA will also launch the new cryptoasset authorisation regime and progress significant work on open banking, fund tokenisation, and digital innovation. The annual funding requirement for 2026/27 is £788.9 million, representing a modest 0.7% increase on the previous year.

Key implications for firms

The 2026/27 work programme demonstrates the FCA's continued commitment to balancing its regulatory objectives whilst responding to evolving external risks including geopolitical uncertainty and technological change. The programme presents several significant implications for regulated firms across the financial services sector.

• Authorisation and permissions: Firms should anticipate faster authorisation timelines and take advantage of simplified digital application processes. Those operating in the BNPL sector will need to apply for authorisation, with affordability assessments required from July 2026. Firms wishing to undertake cryptoasset activities should prepare applications for the new regime.
• Regulatory burden: Firms can expect reduced data reporting requirements and the retirement of unnecessary data returns. The Senior Managers Regime may see proportionality improvements. However, firms should ensure they can engage effectively through My FCA as more regulatory tasks migrate to that platform.
• Consumer Duty: Wholesale firms should prepare for clarification on how the Consumer Duty applies throughout the distribution chain. All firms should review the FCA's examples of good and poor practice as these are published (see our latest Consumer Duty View here).
• Financial crime: Firms should monitor developments around streamlined KYC requirements and ensure robust AML systems remain in place. Higher-risk firms should anticipate proactive supervisory assessments.
• Digital innovation: Firms engaged in open banking, fund tokenisation, or digital assets should track the FCA's policy development closely. The Supercharged Sandbox may offer opportunities to trial AI-driven innovations.
• New supervisees: Legal, accountancy, and trust and company service providers should prepare for FCA AML supervision as the Government legislates to expand the FCA's remit.

1. A smarter regulator

The FCA's first strategic priority centres on becoming more efficient and effective, with enhanced digital and data capabilities enabling smarter and faster decision-making.

Digital and data capabilities

The regulator will continue investing in data and technology platforms, with a particular focus on artificial intelligence, cybersecurity, and quantum computing readiness. The FCA plans to advance its Supercharged Sandbox by onboarding new cohorts of firms and expanding access to high-quality synthetic data. Generative AI will be integrated into regulatory workflows to review documents received from firms, supporting faster authorisation and supervisory decisions.

Reducing administrative burden

With 99% of authorisation applications now decided within statutory deadlines, the FCA will further reduce authorisation timelines and report against new, shorter voluntary targets. The regulator will remove three regular data returns in April and reduce the frequency of another, benefiting at least 11,000 firms. Firms will be able to view most of their regulatory tasks in one place through My FCA by the end of the year.

The FCA also intends to increase the proportionality and effectiveness of the Senior Managers Regime whilst maintaining its core principles and benefits. A simplified Handbook website will make rules more accessible, reducing unnecessary friction and supporting innovation.

2. Supporting growth

The FCA's second theme focuses on enabling investment, innovation and competitiveness to support sustained UK economic growth.

Unlocking capital investment

Key initiatives include consulting on the pension charge cap to facilitate access to a broader range of asset classes, and reforming capital requirements for solo-regulated investment firms to improve liquidity. The FCA will establish a bonds consolidated tape and progress one for equities to improve market functioning. Work will continue on implementing pension value for money frameworks and consulting on a proportionate regime for captive insurance.

The regulator will support mobilisation of defence investment, including prioritising defence-focused funds for authorisation. The FCA will also set clearer standards for firms to identify where the Consumer Duty and retail protections do not apply, enabling professional investors to access wholesale markets with greater confidence.

Digital innovation

The FCA will develop the long-term regulatory framework for open banking and publish its open finance roadmap. Progress will be made on fund tokenisation, including issuing guidance for operating a tokenised fund. The new cryptoasset authorisation regime will launch, with the FCA processing applications from firms wishing to undertake the new regulated activities.

Supporting firms to start up and grow

The FCA will develop a provisional licence regime alongside the Government, giving relevant firms time-limited permissions to operate under strong regulatory oversight as they work to meet full threshold conditions within 18 months. Efforts will continue to speed up IPO applications, including a proposal to remove the seven-day research waiting period. The joint FCA and PRA Scale-up Unit will open to a second cohort of solo-regulated firms.

International engagement

The FCA will expand its overseas presence, including to China, India, and potentially the United Arab Emirates, whilst deepening relationships in Singapore and the US. The regulator will engage with the US G20 Presidency on modernising regulation and prepare for the UK G20 Presidency in 2027. A regulatory regime for ESG ratings will be implemented to improve trust and transparency to operate in a controlled environment whilst working to meet full threshold conditions within 18 months. The joint FCA and PRA Scale-up Unit will open to a second cohort of solo-regulated firms.

3. Helping consumers navigate their financial lives

The third strategic theme focuses on boosting trust, product innovation and support for consumer decision-making.

Credit and financial resilience

The FCA will begin regulating Deferred Payment Credit (DPC) and Buy Now Pay Later (BNPL) products, with lenders required to assess affordability from July 2026. A temporary regime will operate for existing operators who do not currently hold regulatory permissions. The high-cost short-term credit price cap, introduced in 2015, will be reviewed to ensure it remains appropriately calibrated. The regulator will also support the Government's Financial Inclusion Strategy, including progressing variable recurring payments.

Pensions and Investments

A regulatory framework on the long-term value of workplace pension products will be introduced in collaboration with the Department for Work and Pensions and The Pensions Regulator. Through the Advice Guidance Boundary Review (AGBR), Targeted Support has been introduced enabling firms to offer suggestions to groups of customers with common characteristics, going live in April 2026 (see our article on that here). The FCA is consulting on ways to give firms confidence to offer simple forms of advice and will continue to implement the Consumer Composite Investments disclosure regime (see our article on that here and here).

Consumer Duty and mortgages

The FCA will support firms meeting their Consumer Duty obligations by publishing more examples of good and poor practice and clarifying how the Duty applies to wholesale firms throughout the distribution chain. Proposals will be brought forward to expand mortgage access for first-time buyers and other underserved consumers, alongside policy development to support later life lending.

Insurance

The FCA will progress work arising from the Which? super-complaint, including analysing how different sales processes affect consumer outcomes and reviewing how home and travel insurance firms oversee third parties involved in claims handling. The pure protection Market Study will conclude, examining ways to reduce the protection gap and improve consumer awareness and claims experience.

4. Fighting financial crime

The FCA's fourth strategic priority focuses on disrupting criminals and supporting firms to be an effective line of defence.

Detection and disruption

The regulator will strengthen its data-led detection capability by integrating multiple datasets to identify financial crime earlier. A flagship financial crime conference will convene firms, stakeholders, and law enforcement partners to showcase how data and technology can improve detection, prevention, and disruption.

Online safety

The FCA will create a single, end-to-end, intelligence-led service to identify and stop high-harm financial promotions faster. Continued engagement with finfluencers around the risks and responsibilities of promoting financial products will aim to raise standards.

AML and organised crime

The FCA will explore whether more proportionate, streamlined approaches to Know Your Customer requirements, particularly on smaller transactions, could reduce burden whilst maintaining standards. Proactive assessments of AML systems and controls will focus on higher-risk firms. The regulator will continue assertive action against market abuse and improve detection and investigation capabilities.

Next steps

Firms should review the full work programme alongside the FCA's annual fee rates Consultation Paper (CP26/11) published concurrently. The FCA will publish its Annual Report and Accounts in the summer, demonstrating progress against the first year of its strategy.