The FCA has improved its authorisation process, recognising the crucial role the regulator plays in enabling new financial services firms to meet regulatory standards. 98% of cases, including applications from wholesale market firms, are now assessed within regulatory deadlines, up from 89% in Q1 2022/23.

Overseas wholesale financial firms looking to operate in the UK can also benefit from pre-application support from the FCA. The regulator also recently completed the biggest overhaul of stock exchange rules in more than three decades. These changes support economic growth by helping firms access the capital they need to grow.

Other highlights include:

Intervene faster to prevent harm to consumers

The FCA has continued to improve the way it detects problem firms and individuals, helping to intervene earlier. For example, it doubled the cancellation of firm authorisations in 2023 to 1,261 and used its powers to intervene against 34 firms that caused serious concerns, a 68% increase on 2022.

Improved fair complaint handling and compensation

The FCA has taken strong action to ensure that firms compensate consumers quickly and fairly when things go wrong. This year it has intervened with almost 100 lenders to ensure they support borrowers in financial difficulty, and the FCA expects around 270,000 customers to receive almost £60m in compensation. At the same time, the Financial Services Compensation Scheme (FSCS) levy on the sector has fallen to a ten-year low, thanks to its work on prevention.

Strong measures to tackle financial crime

Since April 2023, the FCA has charged 21 people with financial crimes, the most charges it has laid in a single year. In 2023, it obtained nine freezing orders, six more than in 2022, and seized £21.1m of assets from those under investigation.

Protecting consumers in the crypto market

The FCA has introduced new rules requiring cryptoasset promotions to UK consumers to be clear, fair and not misleading. This will help consumers better understand what they are buying and the risks involved.

Consumer protection

Since 31 July 2023, more than 42,000 companies must demonstrate that they have achieved good results for consumers in relation to new and existing products and services on offer, and in relation to closed products that have not been on offer since 31 July 2024, in accordance with the consumer duty.

Supporting innovation

The FCA continues to support innovation in financial markets, including through the establishment of a permanent Digital Sandbox, a testing environment that supports firms in the early stages of product development.

Ashley Alder, Chair of the FCA, said:

“During the reporting period, important additions to our mandate were introduced, our external accountability was expanded and our statutory objectives were extended.

“These changes, together with the introduction of the consumer duty, will help shape how the FCA can contribute to the health and success of the UK financial services sector in the years ahead.”

Nikhil Rathi, Chief Executive Officer of the FCA, said:

“As we have shown this year, we are fully committed to supporting and balancing the different needs of consumers, businesses and the wider economy, so everyone can thrive.

“We recognise the importance of delivering an effective and efficient authorisation service if we want the UK to become the best place in the world for financial services to thrive.

“We continue to play a leading role internationally by shaping global standards in crypto, sustainability and non-bank finance, to name a few.”

Today the FCA published the following: