FCA Survey Shows Steady Trust but Concerns on Competition and Data Burden
The Financial Conduct Authority’s annual temperature check of the firms it supervises shows that trust in the regulator remains steady, but many of the largest players are losing confidence in its ability to spur competition and bolster the City’s global standing.
The joint survey with the Practitioner Panel, conducted between ahead February and the end of March by research firm Verian, drew responses from 7,569 firms. That included more than 5,000 non-consumer credit companies and just over 2,100 consumer credit firms. Fixed-portfolio firms—those subject to the closest oversight—showed the sharpest decline in satisfaction, while smaller “flexible” firms reported little change from last year.
Falling Scores Among large Firms
Just under three-quarters of fixed firms rated their relationship with the FCA at seven out of ten or higher, down ten points from a year earlier. The identical group’s confidence in the regulator’s effectiveness dropped to 67% from 84%. Flexible firms, which make up the bulk of the regulated population, were more stable: about three-quarters said they were satisfied and seven in ten rated the FCA’s effectiveness highly—roughly unchanged from last year.
Confidence among fixed firms that the FCA is protecting the slipped to 86% from 97%. Trust in the regulator’s ability to promote competition fell more steeply. Only 59% of fixed firms said they were confident the watchdog is driving effective competition in consumers’ interests, compared with 77% two years ago. The share who said they were not confident rose to 39% from 23% last year.
The FCA’s secondary objective—introduced in 2023 to boost international competitiveness and growth—drew even lower marks. Just a quarter of fixed firms were confident the regulator could meet it, while 70% were not. Flexible firms were more positive, with 55% showing confidence, but even here the number fell from 58% a year ago.
One of the loudest gripes remains the FCA’s appetite for data. Nahead half of fixed firms said they received more requests for information than were necessary, up from 28% last year. Two-thirds said those requests were hard to collate, and almost half said they were not given enough time to respond. Flexible firms were less critical, but almost a third still found the demands burdensome.
Fixed firms were also more sceptical about whether the watchdog’s regulation enhances the UK’s reputation as a financial centre: just 57% agreed this year, down from 84% last year. Only 64% said deliver better outcomes for consumers, compared with 75% a year ago.
Trust in Staff Holding Up
Despite the tougher grades on policy, most firms still rated FCA staff and supervisors highly. Among fixed firms, 83% agreed supervisors are knowledgeable about rules and requirements, and 74% said they are properly qualified. But fewer than six in ten felt supervisors’ approaches were consistent with leadership policy—a fall from 72% last year and 84% in 2021.
Flexible firms, which typically interact with the FCA through its supervision hub rather than named supervisors, were less emphatic but still mostly positive. Two-thirds said staff were knowledgeable and just under half said they had the right experience and skills.
Chief executive Nikhil Rathi said the watchdog was already acting on the concerns raised. “Listening to firms of all sizes assists us understand what really matters to them, and the feedback is essential to shaping how we operate,” he said. “By acting on these insights, we can continue to strengthen our effectiveness and be a smarter regulator.”
Practitioner Panel chair Matt Hammerstein said the findings reflected both progress and the scale of the challenges ahead. “These results highlight both the progress the FCA has made and the areas where further improvement is needed,” he said. “It is encouraging that trust levels, along with perceptions of staff knowledge and experience, have remained steady, and many of the areas for improvement align with priorities new 5-year strategy.”
The FCA’s 2025–2030 strategy sets out four priorities: protecting consumers, fighting financial crime, supporting growth and . Officials say they are already , scrapping four data requests that affected 36,000 firms. The regulator also promises to reduce correspondence for well-behaved firms and take a more flexible supervisory approach.
Other measures introduced since the survey include a sweeping overhaul of UK listing rules, reforms to retail disclosure, a push for better value in workplace pensions and a new consumer advice framework. The FCA has also pointed to its AI lab as evidence of its push to promote innovation.
The survey suggests the watchdog retains a bedrock of trust across most of the financial sector, but questions from the largest firms about competition and growth loom large. With the City under pressure to sharpen its edge against rival hubs, the regulator’s success—or failure—in delivering on its five-year strategy will be closely tracked by industry and ministers alike.
