Strategy 2022 to 2025 has now come to an end. Here we set out its outcomes and the metrics we used to measure them.
Our outcomes
Strategy 2022-2025 has now come to an end. This is the last time we will report on the progress we set out to achieve. You can find the outcomes and metrics we want to achieve over the next 5 years in our new strategy 2025–2030.
We distinguished between 2 levels of outcomes - consistent topline outcomes and commitment outcomes:
Consistent topline outcomes
These were the outcomes we expected financial services markets to deliver and enabled us to measure how we delivered our statutory objectives over the lifetime of the strategy. For consumers and markets these outcomes were:
Our commitment outcomes
We set out 13 commitments for 2022-2025 and the related outcomes we wanted to achieve for consumers and wholesale markets.
The tabs below show these commitments and how they supported the delivery of our topline outcomes:
Metrics
Our metrics were based on 3 types of data:
- Research data that record the attitudes, perceptions or behaviours of consumers or firms (in particular, our Financial Lives survey (FLS) and the FCA and Practitioner Panel survey).
- Market data that measure or are indicative of the outcome.
- Our data that records our activities to achieve the outcome.
We used 4 key data sources to inform multiple metrics across our outcomes. These are:
All metrics have limitations, especially when dealing with complex and interrelated outcomes.
As expected, progress was not steady during the last 3 years. A metric’s movement is often affected by what other related metrics, and other parties, are doing.
Factors beyond our control such as economic uncertainty and geopolitical instability also had an impact.
For each metric we compared the current value with the baseline value and applied the following rules to determine our progress:
Improved | Indicates positive movement of 5% or more from the baseline value to the latest value. |
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Declined | Indicates negative movement of 5% or more from the baseline value to the latest value. |
Little or no change | Indicates movement of less than 5% from the baseline value to the latest value. |
Not assessed | This includes where latest values are not available, or data sources have changed. |
For survey data (FLS and FCA and Practitioner Panel survey) we used the results of statistical significance testing to determine change.
It is difficult to evidence long-term trends from 3 years of data and to fully understand whether an increase or decrease is consistent with our stated outcomes. This data does not account for long-term trends including economic shifts, technological change or market dynamics.
While the latest value compared to the baseline may show improvement or decline, the data may be influenced by temporary or random factors, such as, seasonality or natural variation.
Additionally, it has taken time for effects or actions to materialise because data often lags behind actions taken. For example, a short-term jump in complaints or compensation claims may be driven by better consumer awareness of their rights or new approaches we use to identify harm faster.
We welcome your views on the metrics and data we set out on these pages at [email protected].
Summary of progress against our metrics so far
This is the final report on outcome metrics for our 2022-2025 strategy. Through our strategy, we set higher standards, delivered regulatory reform and significantly improved our operational capabilities. The work done provides a strong foundation for the next 5 years.
Our metrics show that we achieved progress against the outcomes for many of our 13 commitments. These include putting consumers’ needs first, reducing and preventing financial crime, dealing with problem firms, improving the redress framework, enabling consumers to help themselves, strengthening the UK’s position in wholesale markets and improving the oversight of appointed representatives.
- The introduction of our Consumer Duty set a higher standard of consumer protection, and was central to our putting consumers’ needs first strategic commitment. The 2024 Financial Lives survey showed an increase in the proportion of consumers agreeing that most financial firms are honest and transparent in the way they treat them.
- Our proactive approach to financial crime supervision and better use of data made us faster and more efficient at identifying harm. Firms have adapted their operations to better prevent and reduce financial crime and growth in investment fraud victims and losses has slowed and started to reduce.
- We kept more potentially harmful firms out of markets and made sure that only the firms that met our high standards continued to operate, increasing the number of cancelled authorisations by 121% over 3 years.
- Our work contributed to a halving of the levy on firms to fund compensation, through tackling harm earlier and preventing serious harm, from £700m in 2020/21 to £265m in 2024/25.
- We did more to tackle non-compliant financial promotions by authorised firms. The number of potentially misleading promotions removed or amended grew from 573 in 2021 to almost 20,000 in 2024.
- We introduced a range of reforms to strengthen the UK’s position in global wholesale markets, helping the UK to maintain its position as one of the top markets of choice (London is ranked 2nd in the Global Financial Centres index). In the last year, the gap between London and New York reduced by 41%, further strengthening London’s position. In the underlying metrics that make up the overall index ranking, London’s performance has improved significantly.
- Increasing our standards at the Authorisations gateway led to a short-term increase in the rejection, withdrawal and refusal rate of applications for individuals to perform controlled functions in appointed representatives. On average, there were also significantly fewer complaints generated by principal firms.
The economic and geopolitical environment became increasingly volatile between 2022 to 2025. Although inflation and interest rates eased towards the end of the period, the uncertain backdrop and cost of living pressures continued to affect many consumers and businesses. Despite the challenging economic environment, there was not generally a significant deterioration in metrics.
The number of firms that did not meet our financial resource requirements was slightly higher than in 2021 but has reduced since 2022. However, the proportion remained low and stable. Most firms would be able to wind down without causing significant harm to consumers and wider markets.
There was an increase in the number of operational incidents reported to us. However, our work to minimise the impact of operational disruptions, kept the impact on important business services low. Firms faced a growing level of cyber threat and operational resilience risks. Our FCA and Practitioner Panel survey showed an increase in the proportion of firms for whom operational resilience has become more of a priority.
The links below give further detail on our outcomes and metrics, including progress.
Topline outcomes and metrics
Outcomes and metrics for each of our commitments
- 1. Dealing with problem firms
- 2. Improving the redress framework
- 3. Reducing harm from firm failure
- 4. Improving oversight of Appointed Representatives
- 5. Reducing and preventing financial crime
- 6. Delivering assertive action on market abuse
- 7. Putting consumers’ needs first
- 8. Enabling consumers to help themselves
- 9. Our environmental, social and governance (ESG) priorities
- 10. Minimising the impact of operational disruptions
- 11. Preparing financial services for the future
- 12. Strengthening the UK’s position in global wholesale markets
- 13. Shaping digital markets to achieve good outcomes