FCA Strategy 2025-2030: how to become a “smarter regulator The FCA has set out four priority areas in its 2025-2030 Strategy. Here we explain the first one – becoming a “smarter regulator”, and what it could mean for regulated firms. Topics Risk Management and Regulatory Compliance “A smarter regulator – more efficient and effective” – while the strategy is short on detail, it is strong on sound bites and intent. The FCA intends to adopt a more flexible regulatory approach to firms that are clearly trying to do the right thing and have more direct contact points for these firms to help them navigate supervision. Firms are likely to welcome direct contact and a more risk-based approach to supervision.To deliver on this objective, the regulator has singled out the importance of investment in technology, people and systems to enable it to receive the right amount and types of data and have supervisors who can make dynamic risk assessments and judgements on the behaviour of firms. This is not an easy task and will require the FCA itself to accept more risk. The FCA also intends to make it easier for firms to do business with it by making application processes more streamlined and digital and reducing both the number of questions asked and delay in regulatory processes.The past few years have seen an increase in the volume and complexity of data and information requests from the FCA. The regulator is assessing these reports and has already identified regulatory returns it will no longer require firms to submit – reducing the burden on firms. At the same time, the FCA will be considering how to obtain the information it needs to adopt a more dynamic and data-led approach to supervision.The past few years have seen an increase in the volume and complexity of data and information requests from the FCA. The regulator is assessing these reports and has already identified regulatory returns it will no longer require firms to submit – reducing the burden on firms. At the same time, the FCA will be considering how to obtain the information it needs to adopt a more dynamic and data-led approach to supervision.If you have any questions on how this may impact your firm, please get in contact with one of our team.
