“We are committed to rebalancing risk across the industry which can spur growth,” said Dominic Holland, the Financial Conduct Authority’s (FCA) director of market oversight, during remarks at the Association of Corporate Treasurers Annual Conference. “Decreasing regulatory burden is a focus. But not at the expense of consumer protection.”

FCA Signals Growth-Oriented Shift in Regulatory Approach

The UK’s FCA is preparing to recalibrate its regulatory posture to better support capital market growth, signaling a shift that aims to reduce compliance burdens for issuers while retaining strong standards for investor protection.

Holland described the regulator’s new direction as becoming a “smarter regulator: predictable, purposeful and proportionate,” and emphasized the importance of close collaboration with market participants. “We want to innovate and take on the right risks to encourage growth,” he said.

The message reflects the FCA’s evolving role as it adapts to new political and economic realities following the UK’s departure from the European Union. Industry stakeholders have long called for a more agile domestic regulatory framework to counteract the decline in initial public offerings and capital raising activity in London.

The comments come amid a broader regulatory effort to revitalize the UK’s capital markets. The FCA is currently reviewing rules on listings, secondary offerings, and public offer platforms, as part of a post-Brexit strategy to make London more attractive to both issuers and investors.

In recent quarters and years, New York has consistently outshined London in financial markets and potential IPOs.

Easing Access to Capital and Broadening Market Participation

Among the most notable proposals under review are changes to disclosure rules for corporate bonds, particularly those with low denominations. The goal is to make these securities more accessible to retail investors, who are currently restricted by minimum thresholds.

“We are proposing changes to our rules to align disclosure requirements for low denomination bonds with those for higher denominations,” Holland said. “These rules are designed to make it much easier for issuers to raise capital.”

The FCA is also seeking feedback on streamlining reporting obligations, acknowledging that regulatory complexity — especially across jurisdictions — can be a deterrent to market engagement. “We know reporting is not just the filing of annual reports and accounts,” he said. “It’s time consuming, complicated, and expensive.”

You may also like: FCA’s New Complaints Reporting Likely to Affect CFD and Retail Trading Firms

Despite the focus on deregulation, the FCA insists that safeguards will remain. Holland underscored the need to maintain data collection on areas such as transaction reporting and derivatives activity, noting, “Some reporting is crucial, and we use it every day to help us achieve our objectives.”

Market participants are being encouraged to contribute to upcoming consultation papers that will shape these reforms. “We need to hear from you to help us make those decisions,” Holland said. “Well-informed markets are good for everyone.”