On 10 December 2025, the Financial Conduct Authority (FCA) published its letter (dated 9 December 2025) to the Prime Minister providing an update on its approach to growth.

Growth is a cornerstone of the FCA’s strategy to 2023 and in addition to the steps that the FCA has already taken, the letter sets out some of the steps it will take next year. This includes:

  • Unlocking capital investment and liquidity. The FCA will:
    • reform rules for venture capital and alternative investment fund managers; and
    • consult on the pension charge cap so consumers are not disincentivised from investments due to higher performance fees
  • Accelerating digital innovation to enhance productivity. The FCA will:
    • oversee the launch of variable recurring payments to give people more control of regular payments and drive competition;
    • finalise digital assets rules and progress UK-issued sterling stablecoins; and
    • set the delivery plan for open finance, prioritising SME lending.
  • Reducing regulatory burden. The FCA will:
    • further overhaul mortgage rules so more people get on the housing ladder and can unlock housing wealth in later life. The FCA considers the Government can now safely retire the Mortgage Charter to reduce duplication and reporting; and
    • with the Treasury and Financial Ombudsman Service, finalise reforms to the redress system and provide clarity on fair motor finance compensation.
  • Making it easier for firms to start up and grow. The FCA will:
    • further speed up IPO applications by proposing to remove the seven-day research waiting period; and
    • get ready to enable some early-stage firms to conduct regulated business before full authorisation for when legislation is passed.
  • Improving exports and inward investment. The FCA will:
    • establish a presence in Singapore and deepen integration with the USA; and
    • engage with US G20 Presidency plans on regulatory modernisation.

The PRA has also published its letter to the Prime Minister providing an update on five actions it has taken to support growth. These actions cover:

  • Simplifying the prudential regime for small banks and building societies.
  • Increasing the ability of the insurance sector to invest in the UK economy.
  • Improving the UK framework for Insurance Special Purpose Vehicles (ISPVs), including simplifying and accelerating the ISPV authorisation process.
  • Making further amendments to remuneration requirements to enhance competitiveness.
  • Simplifying regulatory data reporting from banks.

In addition, the PRA provides a brief update on three additional proposals: (i) establishing a ‘concierge service’ to support inward investment by international firms; (ii) rationalising the PRA’s framework of ‘have regards’; and (iii) reducing overlap between our regulatory requirements and other requirements in legislation.

At the end of its letter the PRA briefly describes certain on-going initiatives to support growth. Reforms include finalising the Basel 3.1 rules, cutting bureaucracy in the Senior Managers & Certification Regime, introducing new targets for the PRA’s authorisations processes, making the PRA’s models approval process for banks more efficient and accessible, creating a new regime for insurance captives, and establishing a unit to support fast-growing innovative firms.