UK Treasury and FCA review regulatory perimeter

HM Treasury and the Financial Conduct Authority (FCA) held a senior-level meeting in April 2026 to review updates to the FCA’s Perimeter Report, the document that sets out which financial activities require regulatory authorisation.

Officials said the session brought together the Economic Secretary to the Treasury and the FCA’s Chief Executive under an established coordination process designed to keep government policy aligned with how the regulator supervises firms and other market participants.

Why the FCA Perimeter Report is being revisited

Officials said the discussion focused on whether the Officials said the discussion focused on whether the current regulatory boundary is keeping pace with changing financial services models. They also considered how government and the regulator should respond if the perimeter no longer reflects market reality, including what options may be available if supervision and policy are misaligned with how activities are actually delivered. Focus on authorisation gaps and outdated definitions The Perimeter Report is used to clarify which financial services fall within mandatory regulatory oversight and which do not.

Officials said the April 2026 meeting concentrated on Officials said the April 2026 meeting concentrated on spotting potential gaps in the existing framework where activities may sit outside the authorisation boundary, as well as areas where definitions may have become unclear or outdated.

According to the description of the meeting, participants treated the issue as more than a technical refresh, linking perimeter clarity to possible future decisions about how the boundary should evolve as new models emerge across the financial sector.

Consumer protection and market integrity cited as key aims Authorities said the purpose of reviewing the perimeter is to reduce risks linked to unauthorised financial services.

They said that tightening definitions and clarifying what requires authorisation is intended to support consistent consumer protection standards across the market, while also protecting market integrity.

Officials noted that where activities sit outside the authorisation boundary, oversight tools can be limited. In that setting, they described the perimeter itself as a key defence as business models change.

What firms near the boundary are being told

Institutional stakeholders were advised to prepare for the possibility of changes to authorisation requirements as HM Treasury and the FCA continue refining the regulatory boundary.

Officials said the process is connected to future policy or legislative choices rather than being solely descriptive, and encouraged firms to track perimeter updates to maintain compliance and align business strategy with evolving supervisory priorities.

Meeting notes said the review is particularly relevant for business models that sit close to existing definitions of regulated activity. For now, officials said the principal uncertainty for firms is which activities may be brought inside the authorisation boundary as the work continues, and which areas may remain outside pending further decisions.