The Financial Conduct Authority (FCA) has reiterated its ambition to make UK capital markets more effective, competitive and attractive, while maintaining the high standards and market integrity that underpin confidence in the UK financial system.
In a speech delivered on 5 October 2026, Jon Relleen, the FCA’s Director of Infrastructure and Exchanges, outlined the regulator’s approach to capital markets reform and the progress made across primary markets, secondary markets, post-trade arrangements and emerging technologies.
The message is clear: the FCA is seeking to create a regulatory framework that supports growth and innovation, but not at the expense of trust, transparency or market integrity.
A shift towards informed risk-taking
A central theme of the FCA’s approach is what it describes as “rebalancing risk”.
The FCA recognises that economic growth, investment and innovation inherently involve risk. Particularly in wholesale markets, where professional participants are expected to assess opportunities and risks, the regulator is looking to move away from unnecessary prescription and provide greater scope for firms and investors to make informed decisions.
This does not mean lowering regulatory standards. Instead, the FCA is increasingly focusing on outcomes, transparency and accountability, supported by appropriate disclosures and clear regulatory expectations.
For firms, this potentially provides greater flexibility, but it also places greater importance on having appropriate governance and controls in place to demonstrate that regulatory outcomes continue to be achieved.
Significant reform is already underway
The FCA has completed around 30 capital-markets-focused workstreams as part of its wider programme of reform.
One of the most significant developments has been the reform of the UK listing regime, intended to simplify the framework for companies seeking to access UK public markets and improve the UK’s competitiveness as a listing destination.
The FCA has also introduced a new public offers and admissions to trading regime, including a framework for public offer platforms, designed to provide companies with more flexible options for raising capital.
According to the FCA, around 25 companies joined the Main Market in the first half of 2026, including seven IPOs.
Greater transparency in secondary markets
Improving access to market information is another important part of the FCA’s programme.
The UK’s bond consolidated tape launched in June 2026, providing a consolidated source of information on bond trading. The FCA is now progressing towards an equivalent consolidated tape for equities.
In July 2026, the FCA finalised key elements of the regulatory framework for the equity consolidated tape. The regulator intends to appoint a Consolidated Tape Provider, with the tape expected to begin operating in 2027 or early 2028.
For trading venues, Approved Publication Arrangements and other affected firms, these developments may require changes to existing data, reporting, governance and operational arrangements.
Private markets are becoming increasingly important
The FCA’s reforms also recognise the growing role of private capital.
The Private Intermittent Securities and Capital Exchange System (PISCES) creates a new framework through which shares in private companies can be traded on an intermittent basis.
The FCA reported that four PISCES operators had been authorised and seven transactions had already taken place by the time of its October speech.
The development reflects a broader shift in the UK capital markets landscape, where the distinction between traditional public and private markets is evolving and firms are being provided with new routes to access capital and liquidity.
Tokenisation moves further into focus
Technology is also becoming central to the FCA’s capital markets strategy.
In particular, the FCA and Bank of England are seeking to facilitate the development of tokenised wholesale markets, where Distributed Ledger Technology (DLT) can be used to represent, issue, trade and settle financial assets.
The regulators have already established the Digital Securities Sandbox (DSS), which allows firms to test the issuance, trading and settlement of digital securities within a regulated environment. The FCA has also progressed rules for tokenised investment funds and, together with the Bank of England, is developing a roadmap for wholesale tokenisation.
The FCA has identified areas where firms are seeking greater regulatory certainty, including prudential treatment, custody, collateral, settlement and market infrastructure.
This represents an important development for banks, investment firms, asset managers, trading venues, financial market infrastructure providers and technology firms considering the use of DLT within their business models.
What does this mean for firms?
The direction of travel presents significant opportunities, but regulatory reform also creates implementation challenges.
Firms operating in, or seeking to enter, UK capital markets should consider how the evolving framework affects their activities and whether existing governance, systems and controls remain appropriate.
In particular, firms should consider:
- whether new or amended regulatory requirements apply to their activities;
- whether policies, procedures and governance arrangements require updating;
- the impact of changes to transaction reporting and market transparency requirements;
- whether new market structures, including PISCES, create opportunities for their business;
- the regulatory implications of tokenisation and DLT-based business models; and
- whether planned products, services or technological developments require FCA authorisation, permissions or engagement with the FCA.
The FCA’s approach may provide firms with greater flexibility in certain areas, but that flexibility should not be interpreted as reduced regulatory responsibility. Firms will continue to need robust governance, effective risk management and appropriate systems and controls.
What comes next?
The programme of reform is continuing.
The FCA has identified further work relating to areas including securitisation, listed company disclosures, benchmarks, clearing and margining arrangements, equity market transparency and tokenisation.
The regulator’s overall direction is therefore increasingly clear: the UK regulatory framework is being reshaped to support more dynamic, innovative and internationally competitive capital markets, while maintaining the standards required to preserve confidence and market integrity.
For firms, keeping pace with these developments will be essential. Regulatory change may create new commercial opportunities, but firms will need to understand how those opportunities interact with their existing permissions, regulatory obligations and operating models.
How can Complyport help?
Complyport can support firms managing the evolving UK capital markets regulatory framework, including:
- Regulatory impact and gap assessments;
- FCA authorisation and Variation of Permission applications;
- Business model and regulatory perimeter assessments;
- Governance, policies and procedures reviews;
- Systems and controls and operational readiness support;
- Transaction reporting and regulatory requirements reviews;
- Digital assets and tokenisation regulatory support;
- Ongoing regulatory and compliance advice.
As the FCA continues its capital markets reform programme, firms should consider both the opportunities arising from the new framework and the changes required to remain compliant.
If you would like to discuss how the FCA’s capital markets reforms may affect your business, please contact Complyport to book a meeting with one of our Subject Matter Experts to find out how we can support you.
Discover how Complyport can support your compliance needs. Visit https://complyport.tech/ to learn more about our RegTech solutions.
