The Financial Conduct Authority (FCA) has signalled a major shift in its engagement with the consumer investment sector, publishing its inaugural consolidated Regulatory Priorities report. Speaking at the TISA Inclusive Investing Conference, Lucy Castledine, Director of Consumer Investments, outlined the watchdog's focus for the year ahead, balancing the promotion of a stronger investment culture with a stern crackdown on financial crime.

Key Points:

In a speech marking a "major refresh" of how the FCA communicates with firms, Castledine introduced a single, annual report to replace the previous myriad of portfolio letters. This "one-stop-shop" sets clear expectations for over 5,000 authorised firms serving 19 million UK adults, with four key pillars:

1. Building a Stronger Investment Culture: The FCA aims to empower the 54% of cash-rich, non-advised adults who have never considered investing. The strategy involves moving beyond generic risk warnings. Following December's clarification that firms are not obliged to use the "capital at risk" mantra on all promotions, the regulator is pushing for contextualised risk communication. This involves clearly explaining the relationship between risk and return, enabling informed risk-taking while acknowledging that losses are a possibility.

2. Strengthening Trust via Tech and Governance: Trust is identified as the bedrock of market engagement. The FCA will support innovation—such as AI propositions—through its regulatory sandbox, but insists this must be underpinned by robust governance. Firms are expected to act swiftly on emerging risks and demonstrate accountability. A review of model portfolio service providers is also underway to ensure industry-wide good practice.

3. Securing Good Customer Outcomes: Central to this is the ongoing embedding of the Consumer Duty. The FCA will consult on applying the Duty across entire distribution chains and continue its focus on price and value. A key area of focus remains outcomes for vulnerable customers, with the regulator taking a "smarter" approach through targeted visits and data collection, such as the Platforms Information Request.

4. Strengthening Financial Crime Controls: This remains a high-stakes battleground. The FCA is partnering with Ofcom and global bodies to tackle online fraud. A primary target is the rise of illegal "finfluencers." Castledine highlighted the successful prosecution of seven individuals earlier in 2026 for promoting scams, while simultaneously calling for collaboration with legitimate finfluencers to ensure online content is legal. Firms are also expected to tighten due diligence on their appointed representatives.

Implementation Highlights:

• Targeted Support Goes Live: The much-anticipated targeted support regime is entering its final phase. The authorisations gateway opened on 2 March 2026, allowing firms to apply to offer this new form of guidance—positioned between generic information and full advice—to customer segments. The regime officially launches on 6 April 2026.

• Final Call for Input: The FCA is urging firms to respond to its discussion paper on expanding consumer access to investments by the 6 March 2026 deadline. The review seeks to identify and dismantle regulatory barriers that may be stifling competition and preventing consumers from taking informed risks.

Castledine concluded by emphasising that the vision of a resilient market where more consumers feel confident investing requires genuine partnership between regulators, industry, and consumers, meeting them in the digital spaces where they increasingly seek financial support.