FCA sets out next phase of smarter, more effective regulation

We have set out plans for using AI to speed up authorisations, testing new tools to identify key risks earlier, with our people remaining at the heart of decision-making. The new authorisation tool is being developed internally and will be integrated into existing FCA systems.It forms part of our annual work programme 2026/27, which lays out how we’re accelerating our ambition to be a smarter, more data-driven regulator.We will also use generative AI to support our efforts to modernise regulation, streamline supervision and improve firms’ experience, by reducing unnecessary administrative burdens.We’re only proposing to raise minimum and flat fees by 1%, even after significantly investing in data analytics and digital tools to improve how we triage information and share intelligence more efficiently. This is the lowest rise in the fees budget since 2017/18 and well below the rate of inflation. It’s the lowest annual funding requirement (AFR) increase in a decade, at just 0.7%.Nikhil Rathi, chief executive, FCA, said:’This year’s programme builds on our ongoing drive towards smarter, more data-driven regulation, helping us identify risks sooner, make faster, more consistent decisions and reduce unnecessary burdens on firms. We’re focused on helping consumers navigate their financial lives, reinforcing trust in financial services and supporting growth and competitiveness while keeping our fee increases low.’

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What is FCA? We protect people by helping them understand some of the most common risks they might come across when using financial services.

We want to help consumers protect themselves, so we work with consumer organisations to raise awareness of what we do. These organisations also help inform our approach to regulation.