| Link(s): | HM Treasury and Financial Conduct Authority Performance Reviews – GOV.UK Financial Conduct Authority: Performance Review Meeting – February 2026 – GOV.UK |
Context
On 2 February 2026, the Economic Secretary to the Treasury, Lucy Rigby, met the FCA Chief Executive Nikhil Rathi, to review the FCA’s performance against its statutory objectives and its alignment with the government’s economic policy. Discussion covered the delivery of the FCA’s 2025–2030 Strategy, support for innovation and growth, progress on smarter regulation and supervisory reform, current policy issues including targeted support, motor finance redress, AI, and the proportionate application of the Consumer Duty. HM Treasury has now published a record of the February 2026 review meeting, which in turn followed the publication of a record of a July 2025 review meeting.
Key points to note and next actions
- Strategy and implementation: the FCA focused on delivering reforms at pace, emphasising innovation and the UK’s regulatory stability.
- Targeted support and redress: ongoing work on motor finance, redress framework reforms and the Financial Ombudsman Service.
- AI: Shared aim to balance risk management with avoiding over‑regulation; industry not seeking extensive new FCA guidance.
- Smarter regulation and supervision: Streamlining reporting requirements; replacing ‘Dear CEO’ letters with market reports; encouraging better data quality/legacy IT fixes.
- Consumer Duty: FCA consulting on client categorisation and scope (including wholesale activity) and planning consultation on non‑UK business in the first half of 2026; FCA not supporting full exemptions but exploring proportionate approaches.
- Growth and competitiveness: Updates on the PRA and FCA joint ScaleUp Unit and the Office for Investment: Financial Services; recognition that tax, skills and visas also influence growth, although are beyond the regulator’s remit