The UK’s financial watchdog is signalling a shift in tone as it repositions authorisation as part of a broader growth agenda.
According to ACA Group, at its “Gateway to Growth” event in London on 22 January 2026, the Financial Conduct Authority (FCA) set out how it is modernising its approach to new firm approvals, aiming to combine rigour with efficiency.
The session formed part of the regulator’s five-year strategy, focused on supporting competitiveness while upholding high standards across the UK financial services sector.
Senior figures including FCA CEO Nikhil Rathi and executive director of authorisations and joint interim COO Sheree Howard made clear that authorisation remains demanding, but need not be opaque or unnecessarily slow.
They were joined by directors of authorisations Laura Dawes and Dominic Cashman, alongside Rahul Ahluwalia, CEO of the Office for Investment Financial Services. The consistent message was that the regulator is open to engagement, provided firms come prepared and demonstrate genuine operational substance.
A central theme was the parallel pursuit of growth and consumer protection. The FCA recently launched a multichannel consumer campaign, “Check if it’s real, before you seal the deal,” designed to increase awareness of scams and promote its Firm Checker tool.
While consumer-facing, the campaign underscores expectations that newly authorised firms operate transparently from day one. The regulator wants to be the first point of reference for consumers verifying whether a firm is legitimate, reinforcing trust in the regulatory perimeter.
Perhaps the most striking development is the shortening of authorisation timelines. In Q2 2025, half of authorisation decisions were made within four months. Between April and December 2025, 273 applications progressed to a “minded to approve” stage, and 99.5% met statutory deadlines.
Current benchmarks stand at six months for complete applications and 12 months for incomplete ones, with a future ambition to reduce these to four and 10 months respectively. Increasingly, delays are linked less to regulator capacity and more to application quality and internal readiness.
Sheree Howard addressed misconceptions about the FCA’s role, comparing it to airport security: necessary, but evolving to move people through efficiently without weakening safeguards. Applications from UK and overseas firms are welcomed, yet scrutiny remains robust. Technology and AI are being deployed to streamline document reviews and manage queries, but human judgement remains central. The regulator stressed that automation is intended to enhance efficiency, not dilute accountability.
To encourage early dialogue, the FCA is actively promoting its Pre-Application Support Service (PASS), enabling firms to discuss their business models before formally applying. This includes cases involving changes in control. Early engagement can reduce misunderstandings and avoid costly delays later in the process, particularly for firms entering the UK market for the first time.
Looking ahead, provisional licences may further lower barriers to entry. While subject to primary legislation and parliamentary time, the proposed regime would allow certain firms to operate under time-limited permissions while progressing towards full authorisation. However, it will not apply to firms requiring dual regulation by the FCA and the Prudential Regulation Authority (PRA). If implemented, this could provide growth-oriented FinTech and broader financial services firms with a controlled route into the market.
Beyond authorisation mechanics, the FCA acknowledged structural challenges faced by new entrants, including difficulties in opening bank accounts and navigating relocation logistics. The regulator is working with other agencies to address these friction points and smooth market entry pathways.
For firms seeking approval, the message is pragmatic: engage early, submit complete and well-evidenced applications, ensure senior management can clearly articulate risks and controls, and prepare for ongoing supervision beyond the point of authorisation. Authorisation may be becoming more navigable, but it is no less exacting.
For growth-focused firms willing to meet the regulator halfway, the FCA’s evolving framework suggests that approval is increasingly a gateway rather than a barrier.
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