How we work, our capabilities and technology must enable us to do more, faster. The way we operate can open the way to greater innovation, more investment and support economic growth. We must be cost effective and proportionate, including in how we collect and use data.
In the first year of our strategy, we confirmed the outcomes we want to achieve. These outcomes are:
- stronger digital and data capabilities to help faster and smarter decision-making for colleagues, firms and consumers
- a better experience for firms, including reduced unnecessary administrative burden
- a regulatory approach that is purposeful, proportionate and predictable
- efficient and effective operations.
To monitor these outcomes, we track operational metrics to assess how effectively and efficiently we’re performing our role:
- Maintained high adherence to service standards in our operating metrics.
- Continued improvement in metrics that show we are delivering our secondary objective on international competitiveness and growth (SICGO).
- We also track the following metric:
| Metric description | Source | Baseline value | Year 1 value |
|---|---|---|---|
| Continued improvement in firms’ perceived effectiveness of the FCA in regulating the financial services industry | FCA and Practitioner Panel survey | 2025 6.8 out of 10 for fixed firms and 7.2 out of 10 for flexible non-consumer credit firms | 2026 7 out of 10 for fixed firms and 7.6 out of 10 for flexible non-consumer credit firms (flexible firms’ score increase is statistically significant) |
What the latest metric values tell us
Overall progress against outcomes in year 1
The data shows early positive movement, with perceptions of regulatory effectiveness above baseline.
Operating service metrics show strong and stable performance across key services. In 2025/26, we met or exceeded upper (green) targets for 46 of the 50 standards reported. Performance remained strong in core areas, including authorisations and case handling.
Metrics for the secondary international competitiveness and growth objective (SICGO) show how our regulatory approach supports growth and competitiveness. Data for 2025/26 shows early signs of more effective and efficient regulatory delivery, however, impacts are still emerging.
Perceptions of regulatory effectiveness improved, based on findings from the FCA and Practitioner Panel survey. Scores increased for flexible firms, while scores for fixed firms remained relatively stable:
- Scores for fixed firms remained broadly stable, at 6.8 out of 10 in 2025 and 7 in 2026.
- Scores for flexible non-consumer credit firms increased from 7.2 in 2025 to 7.6 in 2026.
- Scores for full permission flexible firms, which include non-consumer credit firms and some consumer credit firms, increased from 7.1 in 2025 to 7.5 in 2026.
- Perceptions may vary year-on-year. However, the overall trend provides early positive evidence of firms’ experience of regulatory changes.
What’s changed and why this matters
Operating service metrics
Performance improved across several authorisations metrics compared with 2024/25. This included faster handling of approved persons applications. This supports more reliable regulatory decisions for firms to operate and plan effectively.
We significantly improved the timeliness of responses to Members of Parliament (MPs). Faster replies support accountability and trust, helping MPs resolve urgent individual cases sooner and identify emerging issues earlier.
Further detail on performance across service areas is set out in our 2025/26 operating service metrics.
Secondary international competitiveness and growth objective (SICGO) metrics
The metrics show stable demand to enter and operate in UK financial services, with authorisations volumes broadly unchanged and firm exits fell. Fewer withdrawals and rejections suggest that firms are better prepared when applying, reflecting earlier engagement and clearer regulatory expectations.
The total number of data requests fell by 11.2% compared with 2024/25. The number of firms submitting returns also fell, by 8.1%.
The average number of requests firms received fell from 16.3 to 15.8 per firm.
Fixed firms reported an improved experience with FCA communications, with stronger perceptions of clarity and consistency.
Our 2025/26 SICGO metrics provide more detail on methodology, data sources and supporting analysis.
Firms’ perceived effectiveness of the FCA in regulating the financial services industry
External perceptions show early signs of improvement, particularly where firms have experienced direct changes in how regulation is delivered. More limited change among fixed firms suggests progress is not yet consistent across all firms.
Firms’ experience of regulation affects confidence, compliance behaviour and how well systems function. Clearer, more predictable and proportionate interactions help firms focus on managing risk and delivering good outcomes.
Insights on factors influencing the data
Operating service metrics
The data shows improved support to firms and greater efficiency in several areas, particularly where processes have been digitised or streamlined. Stronger performance in authorisations reflects increased use of digital gateways and automation. It also reflects clearer guidance, increased pre-application engagement and well-established processes. This has reduced processing times and improved resilience to changes in demand. Faster responses to MPs’ letters reflect investment in technology and process improvements.
Secondary international competitiveness and growth objective (SICGO) metrics
Changes to data collection metrics reflect our ongoing work to simplify reporting and reduce duplication. This includes removing unnecessary returns and adjusting reporting frequencies.
Firms’ perceived effectiveness of the FCA in regulating the financial services industry
Scores improved among flexible firms. This may reflect early changes in our regulatory approach, including faster, more predictable and data-led supervision. Firm experience will continue to develop as we reform our supervisory approach, focusing on more proportionate, outcomes-focused regulation alongside further improvements to our regulatory systems and processes.
Firm perceptions reflect both how we regulate and the wider external environment, which can shape views of our effectiveness. These metrics capture sentiment rather than impacts on outcomes for consumers and markets, which will emerge over time.
Historical values
Graph 1
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Data table
Q2. Overall, from your firm’s perspective, how effective has the FCA been in regulating the financial services industry in the last 12 months? All FCA regulated firms excluding consumer credit firms: Fixed -, 2017 (74), 2018 (65), 2019 (71), 2021 (58), 2022-23 (60), 2023-24 (47), 2025 (46), 2026 (45). Flexible -, 2017 (2,156), 2018 (2,548), 2019 (2,817), 2021 (3,551), 2022-23 (4,227), 2023-24 (6,561), 2025 (5,349), 2026 (3,605). Mean score: 10 = Extremely effective, 1= not at all effective
Firms were asked to rate how effective the FCA has been in regulating the financial services industry in the last year. The effectiveness score has increased for flexible firms since 2025 and has continued to show stability for fixed firms, correcting declines seen in 2022-23, with scores of 7 out of 10 for fixed firms and 7.6 out of 10 for flexible firms (compared with 6.8 in 2025 for fixed firms, and 7.2 in 2025 for flexible firms).