The Financial Conduct Authority signals a seismic shift in its approach to firm authorisation, aiming to foster growth through accelerated, transparent procedures and improved support channels, without compromising regulatory standards.
On 22 January 2026 the Financial Conduct Authority signalled a marked shift in how it handles firms seeking to enter or expand in the UK financial services market, presenting authorisation more clearly as a tool to enable growth rather than solely as a defensive barrier.
At its Gateway to Growth event in London the regulator set out plans to make decisions more transparent, faster and more predictable while insisting that standards will not be relaxed. Senior FCA figures on the panel included CEO Nikhil Rathi, Executive Director of Authorisations Sheree Howard, and other senior authorisations directors, and their message framed authorisation as both exacting and navigable. According to the announcement from the FCA in July 2025, the regulator has adopted faster targets for processing applications, moving complete new-firm authorisations and variations of permission towards a four-month finish line and trimming the deadline for incomplete submissions to ten months, with those targets measured from January 2026. Sheree Howard said in that FCA statement, “We are taking forward the Government’s new proposals and are prepared to go further and faster to facilitate growth. In doing so, however, we will maintain a robust authorisations process that helps safeguard the integrity of the UK’s competitive financial services market while protecting consumers.”
Regulatory data underpin the drive. Improvements in 2025 included a quarter in which half of authorisation decisions were reached within four months and a period between April and December when 273 applications reached a “minded to approve” stage, indicating substantive progress subject to final conditions. Industry observers note that the lion’s share of delay is increasingly attributable to the quality of applications rather than regulator capacity, prompting repeated calls from the FCA for early and well-evidenced engagement.
To that end the FCA is actively promoting its Pre-Application Support Service so firms can test business models and resolve misalignments before submitting full dossiers. The regulator is also deploying digitisation and AI-assisted tooling to speed document handling and communications, while keeping human judgement central to final determinations. The practical advice to applicants is uncompromisingly pragmatic: engage early, present complete evidence, make sure senior management can explain the business and risk framework, and retain ownership of the submission even when advisers are used.
The Gateway event also tied authorisation reforms to a wider government agenda. A cross-government consultation proposed statutory deadline changes that mirror the FCA’s new targets, and officials are exploring provisional licences that would permit eligible firms to operate under tight supervision while working towards full authorisation, subject to primary legislation. Provisional permissions would not extend to dual-regulated entities overseen jointly by the FCA and the Prudential Regulation Authority. The prospect of time-limited permissions is intended to lower entry frictions without weakening regulatory oversight.
The FCA has signalled sector-specific transition planning where relevant. For example, the operational timetable for the new cryptoasset regime has been published, identifying an application window opening on 30 September 2026 and closing on 28 February 2027, and setting a 30 June 2026 cut-off for firms holding existing crypto registrations to submit complete authorisation applications if they wish to rely on temporary permissions while their files are considered. The FCA has said firms may use multiple PASS meetings to clarify expectations before applying.
Regulatory reform is not limited to authorisation mechanics. Changes are also being introduced to rules such as the Ancillary Activities Test, which will establish three distinct tests to determine whether certain trading activities can be treated as ancillary and therefore exempt from investment-firm authorisation; those amendments are expected to take effect on 1 January 2027 with transitional relief until 1 January 2028. Such adjustments form part of a broader effort to simplify the perimeter and provide clearer lines for firms operating in commodity derivatives and related markets.
The regulator is simultaneously pushing a consumer-facing agenda intended to strengthen trust in the regulatory perimeter. The FCA’s multichannel campaign, “Check if it’s real, before you seal the deal,” and a new Firm Checker tool aim to make it easier for the public to verify whether a firm is genuine and authorised. The message for entrants is unambiguous: transparency and credibility must be embedded from the outset.
Officials acknowledged that other practical barriers remain, including difficulties in opening bank accounts for new entrants, and said they are working with other agencies to reduce such frictions and to make relocation to the UK more viable. In short, the policy mix combines accelerated processes, earlier regulatory engagement, digital tooling and cross-agency collaboration to create a more hospitable environment for credible new market participants while preserving consumer protection.
For prospective entrants the implications are clear: the pathway into the UK market is being reshaped in favour of firms that come prepared. Faster statutory targets and supportive pre-application channels create opportunity, but those benefits will accrue only to applicants capable of demonstrating operational readiness, sound governance and transparent business models.
- https://regtechanalyst.com/faster-fca-approvals-reshape-uk-market-entry/ – Please view link – unable to able to access data
- https://www.fca.org.uk/news/news-stories/fca-sets-faster-targets-authorisations – In July 2025, the Financial Conduct Authority (FCA) announced plans to expedite the authorisation process for firms and individuals seeking entry into the UK financial services sector. The new targets aim to reduce the timeframes for processing applications, with complete applications for new firm authorisations and variations of permission now expected to be completed within four months, down from six. Incomplete applications will be processed within ten months, reduced from twelve. These changes are part of the FCA’s broader strategy to enhance the UK’s competitiveness and support economic growth. The new targets are set to be measured from January 2026, with improvements such as digitised forms and enhanced communications already in place to support firms in meeting these deadlines. The FCA emphasised that while the process will be faster, it will not compromise the rigorous standards required for authorisation. Sheree Howard, Executive Director of Authorisations at the FCA, stated, ‘We are taking forward the Government’s new proposals and are prepared to go further and faster to facilitate growth. In doing so, however, we will maintain a robust authorisations process that helps safeguard the integrity of the UK’s competitive financial services market while protecting consumers.’
- https://www.acaglobal.com/industry-insights/rethinking-fca-authorisation-in-a-growth-focused-market/ – In January 2026, the FCA hosted the ‘Gateway to Growth’ event in London, focusing on enhancing the UK’s financial sector competitiveness. ACA Group attended by invitation, gaining insights into the FCA’s evolving authorisation process. The FCA is reimagining its application procedures to align with the national growth agenda, aiming to make the process more transparent, efficient, and predictable. This approach signals clearer expectations and a more structured dialogue between the FCA and firms entering or scaling within the UK market. The event featured senior figures, including FCA CEO Nikhil Rathi and Executive Director of Authorisations Sheree Howard, who emphasised that while standards will remain high, the process should be navigable and supportive of growth. The FCA’s initiative reflects a commitment to balancing consumer protection with market expansion, ensuring that credible firms can establish themselves confidently in the UK market.
- https://www.fca.org.uk/firms/new-regime-cryptoasset-regulation/how-gateway-will-operate – The FCA has outlined the operational framework for firms seeking authorisation under the new cryptoasset regulatory regime. The application period is set to open from 30 September 2026 to 28 February 2027, during which firms must submit applications to undertake regulated cryptoasset activities. The FCA has established transitional arrangements to facilitate an orderly transition to the new regime. Firms holding valid FCA cryptoasset registration as of the transition date may continue operating under temporary permission whilst their authorisation application is being considered, provided they submit a complete authorisation application by 30 June 2026 and continue to comply with existing registration conditions. Firms not currently registered should apply for authorisation well in advance of September 2026, as applications submitted after 30 June 2026 may not be determined before the deadline, potentially leaving firms unable to operate legally. The FCA has also indicated that firms can have multiple Pre-Application Support Service (PASS) meetings prior to the actual application, allowing for better understanding of the FCA’s expectations.
- https://www.ashurst.com/en/insights/financial-services-speedread-15-january-2026-edition/ – The FCA has announced changes to the Ancillary Activities Test (AAT), which allows firms to be exempt from authorisation as an investment firm when their trading in commodity derivatives, emission allowances, or derivatives of emission allowances qualifies for the exemption. The new rules introduce three separate and independent tests to assess a firm’s eligibility for such exemption: an annual threshold test, a modified trading test, and a modified capital employed test. Firms need only satisfy one test to rely on the exemption. The new AAT framework is expected to come into force on 1 January 2027, with transitional relief available until 1 January 2028. These changes aim to simplify the regulatory framework and provide clearer guidelines for firms operating in these markets.
- https://assets.publishing.service.gov.uk/media/68760c18a8d0255f9fe28e51/Regulatory_Environment_Pillar_Cross-Cutting_Issues_Consultation.pdf – The UK government has proposed changes to the statutory deadlines for authorisation applications to promote faster determinations for firms seeking to set up or grow in the UK. The proposed changes include reducing the deadline for new firm authorisations and variations of permission applications to four months for complete applications and ten months for incomplete applications, down from six and twelve months, respectively. For variations of permission applications where the new permissions closely align with the firm’s existing business model, the target will reduce further to three months for complete applications and six months for incomplete applications. These changes aim to enhance the UK’s competitiveness and support economic growth by streamlining the authorisation process.
- https://www.fca.org.uk/firms/authorisation/apply – The FCA provides guidance for firms seeking authorisation or registration to operate in the UK financial services sector. The application process involves registering and submitting a complete application, which the FCA aims to assess within specific timeframes: six months for FSMA firms and three months for payments or e-money firms. Incomplete applications may take up to twelve months. Applicants must demonstrate compliance with the FCA’s principles of business and relevant rules in the Handbook. Additionally, individual controllers are required to undergo a criminal background check no earlier than six months prior to applying. The FCA also outlines restrictions, limitations, and requirements for applicants, including the possibility to limit or narrow the scope of applied-for permissions or activities.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
7
Notes:
The article references the FCA’s Gateway to Growth event on 22 January 2026, which aligns with the latest available information. However, the press release from the FCA regarding faster authorisation targets was published on 15 July 2025, indicating that the core information may be recycled. ([fca.org.uk](https://www.fca.org.uk/news/news-stories/fca-sets-faster-targets-authorisations?utm_source=openai))
Quotes check
Score:
6
Notes:
The article includes direct quotes from Sheree Howard, Executive Director of Authorisations at the FCA. While these quotes are consistent with the FCA’s press release from July 2025, they cannot be independently verified in the context of this article. ([fca.org.uk](https://www.fca.org.uk/news/news-stories/fca-sets-faster-targets-authorisations?utm_source=openai))
Source reliability
Score:
5
Notes:
The article originates from RegTech Analyst, a niche publication. While it provides detailed information, the lack of a broader, more established source raises concerns about the independence and reliability of the information presented.
Plausibility check
Score:
8
Notes:
The claims about the FCA’s new authorisation targets and the Gateway to Growth event are plausible and align with known regulatory trends. However, the reliance on a single, niche source without independent verification diminishes the overall credibility.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article presents information about the FCA’s new authorisation targets and the Gateway to Growth event, but it heavily relies on a single, niche source without independent verification. The core information appears to be recycled from earlier press releases, and the lack of broader, more established sources diminishes the overall credibility. ([fca.org.uk](https://www.fca.org.uk/news/news-stories/fca-sets-faster-targets-authorisations?utm_source=openai))