FCA Chief Nikhil Rathi Confirms Regulatory Shift to Fewer New Rules to Boost Competitiveness

Britain’s Financial Services and Markets Act 2023 received Royal Assent on June 29, 2023, giving the Financial Conduct Authority a secondary objective to promote long-term growth and international competitiveness. Alongside safeguarding market integrity, protecting consumers and fostering competition, the FCA must therefore consider how regulation affects the appeal of Britain’s financial sector.

FCA Chief Executive Nikhil Rathi recently confirmed in a podcast interview that the agency will move away from continuously creating new rules and adopt a more flexible regulatory approach focused on enforcement and outcomes, while introducing fewer new requirements. His comments included no financial figures, target for the number of rules to be cut or completion date. The key development is the FCA’s public confirmation of the shift in policy focus.