Policy paper

HM Treasury and Financial Conduct Authority Regulatory Perimeter Meeting – April 2026

Published 27 July 2026

Record of the meeting between the Economic Secretary to the Treasury and the Chief Executive of the Financial Conduct Authority (FCA), 30 April 2026

1) On 30 April 2026, the Chief Executive (CEO) of the Financial Conduct Authority (FCA) and Economic Secretary to the Treasury (EST)^{[footnote 1]} discussed the FCA’s perimeter and the issues set out in the FCA’s Perimeter Report. This was the fifth annual meeting to discuss issues related to the regulatory perimeter, which defines the financial services activities that require firms to be authorised by the FCA. 

2)The EST noted the latest update of the FCA’s perimeter report, published in March 2026. The EST thanked the CEO for the FCA’s work on supporting growth and competitiveness, and noted positive feedback from firms during recent engagement. 

3) The CEO discussed Deferred Payment Credit (Buy Now Pay Later), which will come under FCA oversight on 15 July 2026, and thanked the EST for the Government’s support with this.  

4) The CEO raised the following areas for consideration:

Artificial Intelligence (AI) 

5) The CEO raised the impact of fast-paced technological change and AI adoption. The CEO noted the importance of responding to these issues quickly where needed, and noted the benefits of an outcomes-based approach to regulation which provides greater flexibility. The EST thanked the CEO for raising this issue and agreed that the Treasury and FCA should work together to understand the impact of AI on the regulatory perimeter.

Prediction Markets  

6) The CEO noted the points raised within the report about prediction market products (PMPs). In relation to financial PMPs, which fall within the FCA’s regulatory perimeter, the CEO explained that the FCA’s view is currently that they only provide binary options and therefore remain subject to the FCA’s permanent ban on the sale of binary options to retail consumers. Following the FCA’s Discussion Paper on Consumer Access to Investments, it is considering if further work is required on access to these products and/ or clarifying the perimeter.

Investment Consultants 

7) The CEO noted the recommendation in the perimeter report that these activities be brought into the perimeter.

Senior Managers & Certification Regime 

8) The CEO raised that not all types of firms are subject to the Senior Managers & Certification Regime (SM&CR), and suggested that the government should consider extending it to other types of firms.

Financial Influencers 

9) The CEO raised the issue of fraudulent online ‘finfluencers’ (financial influencers). The CEO highlighted that the FCA is taking action where it can, including naming bad actors within warning lists, but that the FCA cannot force social media platforms to remove content under current legislation. The CEO also suggested that the Government could go further to allow information sharing between different regulators. The EST agreed that this is an important issue to consider.

1. This meeting was taken by Lucy Rigby, Economic Secretary to the Treasury, on 30 April, but minutes approved for publication by Rachel Blake during her period in office. ↩