‘We are Open for Business’
The Financial Conduct Authority (FCA) has set out a renewed vision for authorisation and regulatory engagement in its recent “Gateway to Growth” event. Senior FCA leaders used the forum to provide a clear message: The UK regulator is open for business, committed to driving economic growth and reshaping how firms enter and scale within the UK financial services market.
Rather than acting as a barrier, the FCA framed authorisation as a gateway for firms to innovate, compete and grow, provided they meet the required regulatory standards. Against a backdrop of global economic uncertainty and rapid technological change, the FCA signalled a shift in emphasis, from viewing authorisation purely as a gatekeeping function to positioning it as a structured and transparent route into UK financial services markets.
This article highlights the key themes from the event and what firms should take away as they plan UK market entry or expansion.
Catalyst for Growth:
FCA Chief Executive Nikhil Rathi emphasised that economic growth and consumer protection are not competing objectives but mutually reinforcing priorities. This aligns with the FCA’s secondary objective to facilitate the international competitiveness and growth of the UK economy (introduced under the Financial Services and Markets Act 2023), while continuing to advance its primary objectives under FSMA 2000: securing an appropriate degree of protection for consumers, protecting and enhancing market integrity and promoting effective competition.
Authorisation remains central to this framework. Under Part 4A of FSMA 2000, firms must obtain the appropriate permissions before carrying on regulated activities in the UK. The FCA reiterated that robust entry standards are essential in an increasingly complex environment characterised by geopolitical risk, macroeconomic uncertainty and technological innovation, particularly in areas such as digital assets, payments and artificial intelligence.
To meet these challenges, the FCA is changing how it works to provide pragmatic engagement, improving communication and modernising its authorisation processes.
An Open and Accessible FCA:
A recurring theme throughout the event was accessibility. The FCA highlighted initiatives aimed at enhancing transparency and strengthening trust in the regulatory framework, including:
- A new consumer-facing portal allowing users to easily verify whether firms are FCA-authorised, reinforcing the central role of authorisation in consumer confidence.
- A renewed focus on international engagement, recognising that global volatility makes a stable and credible regulatory framework a key competitive advantage for the UK.
Industry feedback shared at the event reinforced this shift. Firms described more pragmatic engagement with FCA case officers, clearer communication and a willingness to engage directly, including on-site visits to resolve issues efficiently.
Reimagined Authorisations:
Sheree Howard, the FCA’s Executive Director of Authorisations, set out the FCA’s “Gateway to Growth” framework.
Authorisation was compared to airport security: essential for safety and integrity, but not a barrier to travel or economic activity. The FCA’s ambition is to be a regulator that actively supports sustainable growth, whilst remaining firmly committed to high standards. Despite evolving to a more collaborative and efficient approach to regulation, the FCA will remain highly rigorous and evidence-based throughout the application process, especially for sectors like payments.
Ms Howard’s key messages included:
- Engage early: firms are encouraged to speak to the FCA sooner rather than later;
- The FCA is open for business: they are actively welcoming new entrants into the market, including international applicants; and
- Assessment time has decreased due to digitalisation, resourcing and process reform.
Regulatory Entry Routes:
The FCA highlighted a range of regulatory entry routes designed to help firms demonstrate they are “ready, willing and organised” without lowering the standards for authorisation:
-
Pre-Application Support Service (PASS):
Key benefits for firms include up to three free meetings with a dedicated FCA case officer, open to firms at any stage of readiness, availability for Change in Control transactions and M&A scenarios and ability to sense-check business models, controls and documentation expectations.
-
Regulatory Sandbox:
The Regulatory Sandbox allows innovative firms to test new products or services in a controlled environment, subject to safeguards.
It is important to clarify that participation in the Sandbox does not constitute a “provisional licence” nor full authorisation. Firms must still obtain the appropriate Part 4A permissions where required. Sandbox participation may involve restricted authorisation, individual guidance, or waivers/modifications of rules where appropriate under FSMA.
-
Early High Growth Oversight:
The FCA also referenced enhanced supervisory engagement for early-stage, high-growth firms. This approach focuses on governance, operational resilience (including compliance with PS21/3 and related operational resilience requirements), financial promotions compliance (including s.21 FSMA financial promotion restrictions) and risk management frameworks.
Leveraging Technology:
The FCA also confirmed the responsible use of generative AI to support application review and evidence analysis, helping case officers reach decisions more efficiently while maintaining rigorous standards.
The impact is already visible with 50% of new firm applications determined within four months (Q2 2025/26), over 270 firms “minded to approve” between April and December 2025, and reducing the statutory timelines for SMF applications.
The UK’s Global Competitiveness:
Rahul Ahluwalia, CEO of the Office for Investment Financial Services (OIFS), highlighted the importance of coordination between regulators, government and industry in promoting the UK as a global financial centre.
OIFS operates across three pillars:
- Promoting the UK as a leading global financial service hub;
- Acting as a single point of contact for international investors;
- Providing real-time insights to policymakers regarding barriers to entry and growth opportunities.
The FCA’s authorisation framework plays a central role in maintaining the UK’s reputation for high regulatory standards combined with market accessibility.
Key Takeaways:
Firms seeking authorisation should make use of the new tools and services now available, namely that firms should:
- Engage early with the FCA through PASS or sandbox routes;
- Be prepared for deeper scrutiny of financials and evidence as part of readiness planning;
- Ensure Senior Management are fully involved in the authorisations process;
- Be transparent, well-prepared and realistic about business models and controls;
- Anticipate a potential provisional license regime as an area of possible regulatory innovation for faster market entry; and
- View authorisation not as a hurdle, but as a stable foundation for long-term growth.
How Can Complyport Help?
The FCA’s “Gateway to Growth” reinforces that firms entering and scaling in the UK should be prioritising early, pragmatic, transparent engagement.
Complyport supports firms at every stage of the regulatory process, acting as strategic partner to help firms navigate the FCA’s authorisation gateway efficiently and confidently.
Our services include:
- FCA Authorisation Support: including new firm applications, Change in Control submissions, and Senior Management Function appointments;
- PASS Support: assist firms engage early with the FCA’s pre-application programme, sense-check business models and prepare for dialogue with case officers;
- Regulatory Perimeter Assessments: help firms determine whether their activities fall within the FCA’s regulatory scope and identify the appropriate required permissions;
- Variation of Permission: support firms seeking to expand into new products, services, or customer segments;
Speak to our experts today to ensure your firm is prepared for FCA authorisation process, including the UK’s evolving crypto regulatory landscape.
Ask ViCA, your Virtual Compliance Assistant. Claim your complimentary 20 queries today! Register here: https://vica.chat
