FCA sets out its 2026 regulatory priorities for consumer investments

On 4 March 2026, the Financial Conduct Authority (FCA) published its Regulatory Priorities report for the consumer investments sector. 

Reports such as this one will, going forward, replace the FCA’s portfolio letters, with each report outlining the FCA’s priority areas of focus for firms operating in that sector.  The reports also cover a wider assessment of previous activities in that space, a helpful summary of the FCA’s publications and speeches relevant to the sector, and a forward-looking timeline of key events. 

Key priorities

A central theme of the FCA’s report for the consumer investments sector is supporting the development of a stronger investment culture and a resilient consumer investment market where consumers feel confident investing. The FCA's four key priorities therefore will come as no surprise:

Building a stronger investment culture: the FCA expects firms to communicate clearly and honestly, ensure products are suitable, and build confidence by enabling consumers to make informed choices.  On its part the FCA will among other things, support implementation of the CCI framework and continue its work on the advice guidance boundary review.  It also intends to collaborate with firms launching innovative products and services 

Strengthening trust: With a focus on strong controls, governance, conduct, and compliance procedures, firms are expected to act promptly to address emerging risks including signs of inadequate financial resources, and assess new technologies and products to ensure good consumer outcomes. The FCA also expects stress testing and contingency planning to strengthen financial resilience. Noting the significant consolidation and rapid firm growth in parts of the consumer investment sector, including platforms and Model Portfolio Service (MPS) providers, the FCA will progress its review of MPS firms and will assess whether the Consumer Duty rules and requirements remain appropriate. It will also support innovation by helping test AI applications and other propositions through the sandbox and publish an evaluation report from AI Live

Securing good customer outcomes: here the focus is on accountability through the distribution chain, with firms expected to design products and services that meet consumer needs, and monitoring outcomes.  Fair value through a clear assessment of costs and benefits is vital, and with a nod to its proposed changes to the client categorisation rules, the FCA reminds firms of the need to be mindful when opting clients out of retail protections. From the FCA we can expect a consultation on clarifications to the application of the Consumer Duty across distribution chains, and further work building on its existing engagement with firms on the Consumer Duty price and value outcome.  Once it has reviewed feedback on its client categorisation proposals no doubt we will have further insight on any changes to be made.   

Strengthening financial crime controls:  The FCA wants more firms to meet consumers where they know they are looking for advice and support – online (with firms using social media and digital channels as appropriate). The FCA reminds firms that they need to have robust controls and should strengthen surveillance, and enhance their reporting. The FCA will continue its partnership with Ofcom and domestic and international bodies to tackle scams and fraud.

Other areas of focus: the FCA will also focus on other areas such as operational resilience, cryptoassets and the Senior Managers and Certification Regime (SMCR), with a review on SMCR expected in H1 2026.

Separately the FCA has highlighted the importance of clear balanced risk warnings – not just as a regulatory requirement, but as an essential cornerstone for building confidence, trust, and an inclusive investing environment (highlighting the FCA’s webpage clarifying its rules). Whilst not specifically mentioned in its latest report the FCA will no doubt have this in mind as it assesses firms against its priority focus areas. 

The FCA’s report can be found here

An FCA speech accompanying the launch of the report can be found here