The FCA focus for retail investment firms in 2025 will continue to shape industry priorities and regulatory strategies. This article explores four critical areas affecting firms this year.
1. Widening Access To Financial Markets
Looking across all the proposals in the FCA’s Annual Work Programme there are a few areas where FCA is proposing changes to the markets with the intention of widening access to those markets for smaller investors. For example, making it easier for companies to raise capital.
2. Improving Access to Financial Advice
Work continues to make financial advice more accessible and affordable for consumers. FCA says it will continue to support proposed new models that can help improve access.
3. Advice guidance boundary review
A new regime will be created providing Targeted Support that will enable savers to invest more by improving access to the support they need to make informed decisions.
4. T+1 Settlement
FCA continues to support implementation of a faster settlement cycle in the UK through stakeholder engagement and monitoring firm’s preparedness.
In addition to monitoring FCA focus for retail investment firms, it’s crucial to cultivate an organisational culture that prioritises compliance and encourages proactive risk management. Firms should review internal policies, provide regular staff training, and monitor emerging regulatory themes, ensuring they’re prepared for supervisory visits or new guidance. Engaging with industry forums, joining relevant discussions, and considering external compliance support can offer fresh perspectives and best practices. Ultimately, building strong internal controls and responding swiftly to FCA updates goes beyond simple box-ticking. It helps maintain trust, safeguard clients, and reinforces your firm’s long-term success in a regulated market.
Staying ahead of FCA focus for retail investment firms in 2025 will ensure your business remains compliant and competitive in a changing regulatory landscape. Leaman Crellin has identified the new initiatives FCA has planned for 2025/26 which may also apply to your firm.
