We're making significant reforms to our capital markets, to maintain the UK's position as one of the most competitive and compelling places to raise capital and invest.
Our capital markets power the nation's economic engine. They are the largest in Europe, while London is the second biggest financial services centre in the world.
We have world-leading derivatives, debt issuance, foreign exchange and commodity trading sectors. We are second only to the US in asset management.
Those strengths are why the UK is the world’s largest net exporter of financial services.
We are in the middle of a programme of significant reforms to our capital markets. This aims to build on strong foundations so we maintain the UK’s position as one of the most competitive and compelling places in the world to raise capital and invest. That is why we have put growth at the heart of our 5-year strategy[1], setting out a vision for more informed risk taking.
Building on strong foundations
We have already done a lot.
We have made it simpler for companies to list in the UK, supporting growth and creating investment opportunities. By overhauling the prospectus regime[2] and introducing a new public offer platform, we have made it easier for companies to raise the money they need to grow. We have also given investment firms more choice in how they pay for research.
Sweeping reforms to the rules for bonds and derivatives[3] will reduce costs for firms and ensure investors have access to better, quicker and clearer data.
Streamlining transparency rules and our proposal to remove the systematic internaliser regime for bonds and derivatives[4] will reduce cost and complexity for firms.
Simplifying the regulatory perimeter for commercial users of commodity derivatives[5], via reform of the ancillary activities test, will also help ensure open and competitive markets.
Millions more people could get support with their pensions and investments, under our landmark reforms to the advice guidance boundary[6]. And information supplied to investors will be simplified to drive investment, including removing complex cost disclosure requirements for firms.
We continue to lower costs for firms by streamlining our rulebook, including the Senior Manager Certification Regime, reducing data requests, simplifying authorisations and focussing engagement with firms on a smaller number of priorities.
Supporting innovation is also a critical part of our work. In June 2025, we introduced PISCES[7], a new private stock market enabling investors to buy stakes in exciting growth companies. And our Digital Securities Sandbox[8] helps firms test drive innovative technology and shape the future of the market.
This work represents a bold shift that promotes innovation, lowers costs, creates jobs and attracts a broader investor base for growing businesses.
Looking ahead
And there is more still to come.
We are establishing a consolidated tape for bonds[9], so investors have better information to trade on in a cost-effective way. We will award the contract this year and in Q4 we will consult on a consolidated tape for equities.
We want to ensure the right protections apply for the consumers who need them and create more freedom for those who don't. We will review who can be treated as a professional investor for investment firms and how retail consumers access investments, to find the right balance and unlock more opportunities. We will update on next steps in Q4.
We receive over 7 billion transaction reports a year[10] that enable us to monitor the cleanliness, transparency and resilience of our markets. We will set out proposals in Q4 to improve the quality of data we receive and reduce costs for firms ahead of introducing final rules in 2026.
In Q4 we will review securitisation rules to identify areas we can simplify and remove barriers to issuing and investing, ahead of finalising rules in H2 2026.
Our reforms in wholesale markets rebalance risk, support new technology and innovation, and shift our regime from pre-emptive gates and checks, towards a world of transparency and disclosures. They give firms more freedom to act and help investors make informed decisions. This will ensure our market remains world-leading, now and in the future.
As we drive forward our ambitious programme of reform, we will continue to engage industry, listen to feedback and pilot new ideas. We will convene where there are differing views, make the difficult decisions and work at pace with Government and industry to deliver this important work.
More information
- In response to the Chancellor's Mansion House speech on 15 July, we published a number of updates:
- CP25/22: Modernising the redress system[11]
- CP25/21: Senior Managers and Certification Regime review[12]
- We've issued a joint statement with the Prudential Regulation Authority (PRA)[13] welcoming the Treasury’s plans to support the growth of the UK’s captive insurance market. We are committed to developing a proportionate authorisation and regulatory regime for captives reflecting the lower risk they pose.
- On 24 December 2024, the Prime Minister wrote to the main UK regulators (including the FCA) seeking ideas for growth. In our response letter (PDF)[14] of 16 January 2025, we set out our plans to do this, listing almost 50 actions we are taking to unlock new potential in the economy.
- Nikhil Rathi, chief executive, recently delivered a keynote speech at TheCityUK annual conference[15], to discuss the strengths and potential of financial services.
- Simon Walls, executive director of markets, recently delivered a speech[16] outlining how the FCA supports risk taking and growth.
- Sarah Pritchard, deputy chief executive, recently delivered a speech[17] explaining the FCA had switched off data requests, benefitting around 16,000 firms