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Payments firms should see greater clarity and feel less regulatory burden, but must ensure their adoption of technology enables real-time, data-led compliance that supports consumer protection and operational resilience.
The Financial Conduct Authority (FCA) Annual Work Programme for 2026/27 shows that it intends to “work to deepen trust, rebalance risk and support growth to improve lives across the UK financial system”, focusing on its four key priorities:
- Be a smarter regulator.
- Support sustained economic growth.
- Help consumers navigate their financial lives.
- Fight financial crime.
Like its recently published Payments Priorities, the FCA’s work programme is largely consistent with what we know about its ongoing agenda, with the regulator now in the second year of a five-year strategy.
Also like the priorities, one notable evolution in its approach is its attitude to the use of artificial intelligence (AI), which it plans to roll out across authorisations and supervision.
This embrace of AI is the FCA responding to criticisms that it moves too slowly, and seeking to dramatically increase its operational efficiency.
In addition, it is looking to counter the growing threat posed by quantum-enabled fraud and AI-driven financial crime.
It is also pushing firms to ensure that their compliance is data-led and functions in real time, and is looking to significantly reduce the time between a firm making an error and regulatory intervention.
Staying up to date
The FCA is prioritising open banking and open finance, aiming to develop a long-term, sustainable regulatory framework and ensure it becomes a core part of the payments infrastructure.
It is seeking to advance the progress of commercial variable recurring payments (cVRPs) to allow consumers to securely authorise trusted third parties to manage recurring transactions. This could help open banking become a genuine competitor to the Direct Debit and card schemes
In addition, the regulatory perimeter is expanding, with a new buy now, pay later (BNPL) regime going live on July 15, 2026 and the stablecoin gateway opening on September 30.
The regulator will continue to help firms comply with the requirements of the Consumer Duty by publishing examples of good and poor practice. However, it is looking for evidence of effective implementation, not just planning.
Firms should be prepared to work with the regulator in areas where they need more clarity.
The work programme aims to offer smarter regulation for firms that respond in kind. We will see greater use of technology and support for alternative payment methods to boost both growth and resilience.
Firms need to make sure their compliance programmes align with the regulator’s approach, adopting AI and other technology to create efficiencies and boost consumer protection.
Those still relying on manual reconciliations and legacy safeguarding processes are setting themselves up for scrutiny and intervention.
