What happened?
As featured in Always Finance News, TCC Group’s analysis sets out how 2026 will see the Financial Conduct Authority place greater emphasis on evidence over intent, moving to more targeted, data-led supervision while maintaining a pro-growth stance.
Firms that can clearly demonstrate strong governance, fair customer outcomes and effective risk controls may benefit from lighter reporting, but scrutiny overall will be sharper and more outcome-focused, particularly under Consumer Duty requirements.
Why does it matter?
Alongside Consumer Duty, regulators are prioritising responsible AI use, operational resilience, motor finance preparedness, and integrated cyber and data protection. Firms that invest in transparent systems, reliable data and customer-centred practices stand to reduce regulatory risk and build competitive trust.
Success in 2026, on this analysis, will depend on firms proving their capability rather than promising compliance.
Who is affected?
The shift affects firms across banking, wealth management and financial advice, general insurance and protection, and lending and consumer credit, wherever Consumer Duty, AI use or operational resilience obligations apply.
Key risks
- Sharper, more outcome-focused scrutiny under Consumer Duty
- Increasing regulatory focus on responsible AI use
- Operational resilience expectations
- Motor finance preparedness
- Integrated cyber and data protection requirements
Actions to take
- Review governance and management information so that fair customer outcomes can be evidenced, not just asserted.
- Strengthen data quality and traceability to support more targeted, data-led supervision.
- Check preparedness across responsible AI use, operational resilience, motor finance and cyber and data protection.
Recommendations
Firms that can evidence strong governance, fair outcomes and effective risk controls now will be better positioned as FCA supervision becomes more targeted and data-led.
Supporting sources
Frequently asked questions
What is changing in FCA supervision in 2026?
The FCA is expected to place greater emphasis on evidence over intent, moving to more targeted, data-led supervision while keeping its pro-growth stance.
Which areas will regulators focus on besides Consumer Duty?
The analysis points to responsible AI use, operational resilience, motor finance preparedness, and integrated cyber and data protection as additional areas of regulatory focus.
What benefit is there for firms with strong governance?
Firms that can clearly demonstrate strong governance, fair customer outcomes and effective risk controls may benefit from lighter reporting requirements.
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- BankingTCC helps retail banks, challenger banks, building societies and specialist banking providers strengthen governance, manage financial crime risk and demonstrate good customer outcomes. Our specialists support Consumer Duty, remediation, regulatory transformation, FCA intervention and compliance assurance programmes through advisory, managed services, specialist resourcing and technology-enabled compliance. With more than 25 years of experience supporting FCA-regulated firms, we help banks respond confidently to regulatory scrutiny while strengthening operational resilience and customer trust.
- General Insurance & ProtectionTCC helps insurers, brokers, MGAs and protection providers evidence fair value, strengthen customer outcomes and identify emerging customer harm. We assess product governance, claims performance, distribution oversight and vulnerability risks, helping firms create regulator-ready evidence, improve operational performance and demonstrate that products and services deliver value throughout the customer lifecycle.
- Lending & Consumer CreditTCC helps consumer credit firms evidence good outcomes, strengthen affordability and vulnerability frameworks, and manage complaints, remediation and regulatory risk. We support lenders with practical, regulator-ready compliance programmes that improve governance, customer treatment and operational resilience.
- Wealth Management & Financial AdviceTCC helps wealth managers, financial advisers, networks, platforms and consolidators strengthen compliance, evidence customer outcomes and manage regulatory risk. Every engagement is designed to deliver practical improvements, stronger governance and regulator-ready evidence. For more than 25 years, we have helped FCA-regulated firms navigate regulatory change, supervisory reviews and business growth.