HM Treasury published minutes of the Economic Secretary to the Treasury’s six-monthly performance review meetings with the Financial Conduct Authority (FCA), setting out discussions with the FCA Chief Executive on performance against statutory objectives and alignment with the government’s economic policy. The records implement the Chancellor’s Regulation Action Plan commitment to formalise sponsor-department performance reviews and cover meetings in July 2025 and February 2026. The July 2025 minutes focus on how the FCA is embedding its secondary international competitiveness and growth objective, including policy work on listings and prospectus reforms and joint development with the Treasury of the Private Intermittent Securities and Capital Exchange System (PISCES), alongside operational changes such as the “My FCA” portal and use of Sandboxes. They also cover mortgage lending work, noting lenders increased the amount they can lend by around 10% following an FCA supervisory statement and that the FCA was seeking feedback on proposals including a simpler advice journey and stress testing changes, as well as later-life lending. Across burden reduction, the minutes cite removal of some data requirements for around 16,000 firms, retiring outdated supervisory letters and reducing the size of the Handbook, with further progress expected alongside Treasury-led reforms including changes affecting the Senior Managers and Certification Regime and the Consumer Credit Act; the discussion also touched on readiness to meet reduced statutory deadlines for authorisation decisions and other approvals while retaining flexibility for complex cases. The February 2026 minutes cover delivery of the FCA’s 2025–2030 strategy, work on motor finance and reforms to the redress framework and operation of the Financial Ombudsman Service, and industry interest ahead of the FCA’s targeted support launch in April. They also record discussions on artificial intelligence in the context of Treasury Select Committee recommendations, with both sides emphasising balancing risk management and innovation and noting industry was not in favour of extensive new FCA guidance, plus ongoing “smarter regulation” efforts to streamline firm reporting while preserving data needed for objectives such as market integrity. On the Consumer Duty, the minutes note a request for updates on application to firms primarily engaged in wholesale activity, confirmation that the FCA is consulting on client categorisation and plans to consult on treatment of non-UK business in the first half of 2026, and that the FCA does not support complete exemptions but is exploring proportionate approaches, alongside an observation that HM Treasury could revise financial promotion legislation to align.
HM Treasury 2026-04-28
UK HM Treasury publishes records of six-monthly performance review meetings with the Financial Conduct Authority
HM Treasury published minutes of the Economic Secretary to the Treasury’s six‑monthly performance review meetings with the Financial Conduct Authority for July 2025 and February 2026, covering performance against statutory objectives and alignment with government economic policy. Key topics included embedding the FCA’s secondary international competitiveness and growth objective, burden reduction and authorisations, mortgage and later-life lending, delivery of the 2025–2030 strategy, motor finance and redress reforms, artificial intelligence oversight, “smarter regulation” of reporting, and the scope and proportionality of the Consumer Duty, including for wholesale and non‑UK business.