Summary
What this article covers in 30 seconds
- The FCA is moving from prescriptive regulation towards outcomes-based supervision.
- Firms that demonstrate effective controls may face reduced reporting burdens.
- Consumer Duty remains focused on fair value, clear communications and positive outcomes.
- AI, digital tools and third parties require transparency, accountability and strong data governance.
- Operational readiness and reliable audit trails are central to trust and competitiveness.
Recently featured in Forum Events and Media Group, TCC Group (TCC, Momenta and Recordsure) shared Joe Norburn’s reflection on the FCA’s approach in 2026.
The FCA is shifting from prescriptive regulation to outcomes-based supervision, with a stronger emphasis on evidence rather than intent. While the regulator is adopting a more pro-growth tone and reducing reporting burdens for firms that can demonstrate effective controls, scrutiny is becoming increasingly targeted and data-led.
Consumer Duty remains central. Firms are expected to prove they deliver fair value, clear communications and positive customer outcomes, supported by monitoring and governance rather than policy statements alone.
Governance, innovation and readiness
The FCA is also sharpening its focus on responsible innovation, operational resilience and financial crime prevention. As firms expand their use of AI, digital tools and third-party providers, they need transparency, accountability and strong data governance.
Continued attention on areas such as motor finance, cyber security and customer vulnerability highlights the need for operational readiness and reliable audit trails. Ultimately, 2026 will distinguish firms that can evidence strong governance and customer-centric practices from those that cannot, making demonstrable capability a driver of trust and competitiveness.
Frequently asked questions
The FCA is moving from prescriptive regulation to outcomes-based supervision, with more emphasis on evidence than intent.
Firms are expected to prove fair value, clear communications and positive customer outcomes.
Reliable audit trails support operational readiness and help firms evidence governance, controls and customer-centric practices.