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ARTICLE · 04 APRIL 2025

A Smarter Regulator – The FCA's Shift In Approach

A&O Shearman
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The UK Financial Conduct Authority (FCA) has set out its commitment to "become a smarter regulator" – one that is predictable, purposeful and proportionate.

United KingdomFinance and Banking
Annabel Smith
Annabel Smith
Olivia Kendall-Martin
Olivia Kendall-Martin
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The UK Financial Conduct Authority (FCA) has set out its commitment to "become a smarter regulator" – one that is predictable, purposeful and proportionate. This may have been well received by firms, especially since, tonally at least, it signals a potential adjustment to the FCA's approach in 2022-2025 which aimed to set higher standards by being "more innovative, assertive and adaptive". It also promises operational improvements to become more efficient and effective. But what does becoming a "smarter regulator" mean in practice, and how will the FCA approach authorisations, supervision and enforcement in the next five years?

A smarter regulator sounds different, but is it?

Becoming a smarter regulator is one of only four FCA priorities for the next five years, making the FCA's reform of its operating approach a key component of its new strategy, and not just a means to deliver it. It is therefore a significant focus for the FCA from which we can infer its

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