HM Treasury published the minutes of the Economic Secretary to the Treasury’s first formal performance review meeting with Financial Conduct Authority (FCA) Chief Executive Nikhil Rathi, held on 21 July 2025. The discussion reviewed the FCA’s performance against its statutory objectives and its alignment with the government’s economic policy, following the March 2025 commitment in the Chancellor’s Regulation Action Plan to formalise regulator performance reviews. The meeting covered the FCA’s approach to embedding its secondary international competitiveness and growth objective within its 2025–30 strategy, including work on listings and prospectus reforms and joint development with HM Treasury of the Private Intermittent Securities and Capital Exchange System (PISCES). Operational changes aimed at improving pace and digitalisation were also discussed, including the “My FCA” portal and use of sandboxes, alongside how the FCA balances growth with consumer protection and other objectives. On mortgages, the FCA noted that lenders increased the amount they can lend by around 10% following its initial supervisory statement, and that it is seeking feedback on proposals to simplify the advice journey, update the stress test and consider later life lending. The FCA also highlighted steps to reduce regulatory burden in support of the government’s target to cut administrative costs for businesses by 25% by the end of the Parliament, including removing some data requirements for around 16,000 firms, withdrawing outdated supervisory letters and reducing the size of the Handbook, with further work linked to HM Treasury-led reforms to the Senior Managers and Certification Regime and the Consumer Credit Act. Authorisations and approval metrics were reviewed in the context of planned reductions in statutory decision deadlines and the FCA’s new internal targets. Next steps include the FCA reporting back shortly after the mortgage consultation closes in September, and progressing development and launch of the Scale-Up Unit announced in the Leeds Reforms, working with the City of London Corporation, the British Business Bank, the Prudential Regulation Authority and trade bodies.
HM Treasury 2025-10-09
UK's HM Treasury publishes record of its first formal performance review meeting with the Financial Conduct Authority
HM Treasury released minutes from the Economic Secretary's performance review meeting with FCA Chief Executive Nikhil Rathi, focusing on the FCA's alignment with government economic policy and statutory objectives. Discussions included the FCA's strategy for international competitiveness, operational improvements, and regulatory burden reduction. The FCA also addressed mortgage lending increases and upcoming initiatives like the Scale-Up Unit.