Reforming UK capital markets to ensure they work well for our economy

The FCA has completed major aspects of a multi-year programme to ensure UK capital markets support economic growth, with further reforms underway. Key emerging areas include tokenisation, AI, and markets for trading private company shares, signalling a shift in regulatory focus. For compliance teams, this speech underscores the need to stay agile as the FCA adapts its approach to rapid market changes.

While no immediate new rules were announced, firms should anticipate forthcoming consultations and policy statements in these areas. Proactive engagement with the FCA’s evolving agenda will be crucial. Capital markets participants, investment managers, and fintech firms should assess their strategies for tokenised assets, AI integration, and private share trading platforms to align with expected regulatory developments.

Business impacts include potential changes to market infrastructure, trading practices, and disclosure requirements. Opportunities exist for firms innovating in tokenisation and AI, but regulatory uncertainty remains. Firms should monitor FCA communications closely and consider participating in consultations to shape the regulatory landscape.

Overall, the speech indicates a continued push for competitiveness and growth, with compliance functions playing a key role in navigating the intersection of innovation and regulation.