Firms report improved satisfaction and confidence in FCA

Regulated firms have reported an improvement in satisfaction and confidence levels in the Financial Conduct Authority (FCA), the latest FCA and Practitioner Panel survey has shown.

It found that 79 per cent of firms were ‘highly satisfied’ with their relationship with the FCA, an increase of 5 percentage points from last year.

The proportion of firms that rated the FCA as a ‘highly effective regulator’ also rose, increasing from 69 per cent to 76 per cent, while 75 per cent reported high levels of trust in the regulator.

Firms were most confident in the FCA’s work to protect consumers (87 per cent), ensuring markets work well (85 per cent) and enhancing the integrity of the UK financial system (85 per cent).

Three quarters (75 per cent) of firms said the FCA’s 2025-30 Strategy was clear, while 88 per cent felt their firm understood FCA expectations.

However, firms were less positive about the regulator’s performance when it came to innovation.

Just 32 per cent believed that the regulator’s innovation services were effective in supporting growth and 38 per cent felt the FCA was able to adapt its regulatory requirements to respond efficiently to innovation.

A third (33 per cent) reported receiving more information questions than they felt was necessary over the past 12 months, with the Financial Resilience Reporting requirements widely seen as an unnecessary burden on firms.

Furthermore, 25 per cent said the FCA was not acting proportionately from a cost/benefit perspective and 32 per cent felt the simplification of the Handbook requirements had not helped to reduce costs.

“A year into our strategy it's encouraging to see growing confidence across many areas of our work,” commented FCA chief executive, Nikhil Rathi.

“We know there is more to do. For example, while we can’t do our job without the data firms provide, we should continue to simplify requests and make them easier to manage.”

FCA Practitioner Panel chair, Matt Hammerstein, added: “This year’s survey results indicate firms continue to have broadly positive views of the FCA, including strong understanding of expectations under the Consumer Duty and significant growth in confidence in the FCA’s ability to deliver on its secondary objectives focused on growth and competitiveness.

“The panel is encouraging the FCA to be clearer about the outcomes it expects its priorities to produce, and more vocal about the progress it is making against these, to strengthen confidence in the UK as a leading global financial centre and attractive place to invest.”

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