To enable firms to experiment with the issuance of stablecoins, the FCA will open its regulatory sandbox for safe testing and to support innovative policy development.

In a letter to the Prime Minister the FCA also said that, following nearly 50 growth commitments laid out at the start of the year, the vast majority have been met, and more initiatives to support growth have also been delivered.

The package of growth reforms enables firms to scale, supports home ownership, bolsters capital markets, and gives consumers more options to invest.

Next year, the FCA will deliver a new wave of growth initiatives to focus on more efficient supervision, the digitalisation of financial services, increasing SME lending, and boosting trade and international competitiveness.

Plans include deepening US-UK market integration through the Transatlantic Taskforce for Markets of the Future; and preparing to enable some early-stage firms to conduct regulated business before full authorisation, for when legislation is passed.

Nikhil Rathi, chief executive of the FCA, said: “Supporting growth helps consumers, improving their financial resilience and providing more choice. Our reforms help the UK maintain its global competitive edge in our world-leading wholesale markets, attract international investment, and lead on innovation in financial services. We will continue to embrace a bolder risk appetite to support growth, while maintaining our commitment to protect consumers and ensure market integrity.”

Flagship growth reforms that have been delivered this year include:

• Unlocking capital investment and liquidity: To support wholesale markets, a groundbreaking new private stock market, PISCES, makes it easier and swifter to trade in private shares; and final rules for a new prospectus regime make it easier to raise capital and encourage investment.
• Accelerating digital innovation: The world’s first Supercharged Sandbox in partnership with Nvidia helps firms safely test AI; and the introduction of a Scale-up Unit with the PRA will support fast-growing, innovative firms navigate the regulatory landscape.
• Reducing regulatory burden: Saving time for 36,000 firms by reducing the number of data requests, only asking for the data needed; and proposed measures to simplify the Senior Managers and Certification Regime will drive UK competitiveness.
• Making it easier for firms to start up and grow: Extended pre-application support with 158 wholesale, payments and crypto firms applying since April; more support offered to early and high growth firms with 50% more dedicated supervisors; and authorisations have continued to improve, with 99.5% of cases processed on time and faster targets set to be introduced next year.
• Improving exports and inward investment: A presence has been established in the US and Asia-Pacific as part of plans to have a network of financial services attachés around the world; and the FCA is partnering with Government to support international firms to expand into the UK through the Office for Investment: Financial Services.

As part of the FCA’s work to rebalance how it approaches risk, its mortgage market reforms have been taken up by 85% of the market, with lenders being able to offer home buyers around £30,000 more, on average. Proposals to introduce targeted support will also encourage a greater culture of retail investment to help people make informed financial decisions.

In this year’s Global Financial Centres Index, London maintained its position as the second highest ranked financial hub, closing the gap on New York. Edinburgh and Glasgow also performed strongly, placed in 32nd and 34th position respectively.