This post was originally published on fca.org.uk
Working differently to support a changing world
Change is happening at a breakneck speed.
More technology. More cross-border activity. More innovation.
All moving faster than traditional regulation can keep up with.
Which is why we’re not just regulating for the market as it is today. We’re future-proofing it.
By setting clear, outcomes-focused standards, using better data to spot emerging risks and keeping our rules under review as markets evolve.
That approach keeps us open-minded in the face of change.
And our regulation and rulebook proportionate and fit for the future.
Take the package of reforms we consulted on this summer. By streamlining the rulebook for asset managers, we could save firms £128m per year.
Our proposed fund reporting framework is part of that: simpler reporting for firms, better data for us to consider as we review our rules and see how markets are operating.
We’re collecting responses until Thursday, so there’s still time to have your say.
I’ve always said we can’t regulate just for yesterday’s challenges. We have to let markets evolve.
And we are.
We worked previously to support industry and IA-led blueprints for fund tokenisation.
Now, we’re helping firms put them into practice.
Baillie Gifford tested the technology behind its tokenised fund in our regulatory sandbox. That fund was authorised in under a year.
Next month, our joint tokenisation roadmap with the Bank of England will set the path from testing to lasting infrastructure for markets as a whole.
But change also demands preparation.
With T+1 settlement less than a year away, we are focused on this sector’s readiness.
So be prepared – because we will act if you’re not.
After all, market integrity is at stake.
Getting outcomes-focused regulation right means you don’t need to wait for new rules to innovate.
And this will move us beyond a cycle of constant rule making to one of us checking that our rules work as intended.
We already do this regularly.
You’ve seen it in the removal of rules requiring a 7-day delay in initial public offerings.
Our review of the Consumer Duty’s application to wholesale markets.
And our Advice Guidance Boundary Review and unbundling of research rules.
You’ve also just heard me say we’re just past the peak of rule making.
While it may not feel like it yet, it will eventually – I promise!
When it does, our focus will be clear.
Keep what works. Fix what doesn’t. And keep growth and innovation at the centre of it.
