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HM Treasury publishes the record of its Regulatory Perimeter Meeting with the FCA on April 2026

Jul 31, 2026 | HM Treasury (HMT)

Link(s):  HM Treasury and Financial Conduct Authority Regulatory Perimeter Meeting – April 2026 – GOV.UK

Context

The Financial Conduct Authority (FCA) regularly updates its Perimeter Report setting out its views on the financial services regulatory perimeter, which defines the financial services activities that require firms to be authorised by the FCA. On 30 April 2026 the Economic Secretary to the Treasury (EST), Lucy Rigby, and the Chief Executive (CEO) of the FCA, Nikhil Rathi, met to discuss the March 2026 update to the FCA’s Perimeter Report.

Key points to note and next actions

The CEO discussed Deferred Payment Credit (Buy Now Pay Later), which will be under FCA oversight on 15 July 2026, and thanked the EST for the Government’s support with this.  The CEO also raised the following areas for consideration:

  • Artificial Intelligence (AI): The CEO raised the impact of fast-paced technological change and AI adoption, noting the importance of responding to these issues quickly and the benefits of an outcomes-based approach to regulation, which provides greater flexibility. The EST agreed that the Treasury and FCA should work together to understand the impact of AI on the regulatory perimeter.
  • Prediction Markets: The CEO noted the points raised within the report about prediction market products (PMPs) and explained the FCA’s view is currently that they only provide binary options and therefore remain subject to the FCA’s permanent ban on the sale of binary options to retail consumers. Following the FCA’s Discussion Paper on Consumer Access to Investments, it is considering if further work is required on access to these products and/ or clarifying the perimeter.
  • Investment Consultants: The CEO noted the recommendation in the perimeter report that these activities be brought into the perimeter.
  • Senior Managers & Certification Regime: The CEO raised that not all types of firms are subject to the Senior Managers & Certification Regime (SM&CR) and suggested that the government should consider extending it to other types of firms.
  • Financial Influencers: The CEO raised the issue of fraudulent online ‘finfluencers’ (financial influencers) and highlighted that the FCA is taking action where it can, but the FCA cannot force social media platforms to remove content under current legislation. The CEO also suggested the Government could go further to allow information sharing between different regulators. The EST agreed that this is an important issue to consider.