Asset management reforms target £128 million in annual savings
Sarah Pritchard, Financial Conduct Authority (FCA) deputy chief executive, said on October 20, 2026, that proposed reforms could save asset managers £128 million annually. At the Investment Association dinner, she called for strategic rather than piecemeal reform.
Less prescription, more targeted support
Pritchard said the FCA had passed peak rule making.
More than a dozen firms gained targeted-support authorisation within six months; early evidence shows recipients invest up to 53 percent more than non-recipients.
Updated simplified-advice rules will follow, alongside case studies developed with the Financial Ombudsman Service.
Proposed fund reporting changes seek simpler returns and better regulatory data, with responses due October 22. A joint tokenisation roadmap with the Bank of England is due in November.
Baillie Gifford tested its tokenised fund technology in the FCA sandbox; authorisation took under a year.
Other changes include removing the seven-day delay for initial public offerings and reviewing the Consumer Duty in wholesale markets.
Fraud challenges the trust agenda
UK investment fraud losses rose 40 percent in 2025.
The FCA issued over 2,300 scam and unauthorised-firm warnings last year and recently made three insider-dealing arrests.
It also helped the Metropolitan Police disrupt a suspected organised crime network.
Consumers have used Firm Checker nearly two million times since January.
A July review found scope to improve asset-management financial crime controls, particularly in private markets.
Pritchard urged firms to tailor controls to risk, share intelligence early and identify gaps criminals exploit.
Readiness remains a firm obligation
With T+1 settlement less than a year away, Pritchard warned that the FCA would act against unprepared firms.
Outcomes-focused regulation allows innovation without waiting for new rules, she said.
The FCA plans to check whether existing rules work as intended, use better data and focus supervision where risks sit.
Source: Reshaping regulation, deliberately
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