FCA Annual Work Programme 2026/27 - Four Strategic Priorities & AI Integration
Circular diagram, surrounded by 4 aims. Source | FCA
The FCA's 2026/27 Annual Work Programme sets out how the regulator will deliver on its four strategic priorities: being a smarter regulator, supporting growth, helping consumers navigate their financial lives, and fighting financial crime. Key new commitments include integrating AI into FCA regulatory workflows, consulting on the pension charge cap, a new end-to-end financial promotions intelligence service, and the Perimeter Report's call for action on AI guidance tools and prediction markets.
Context:
The Annual Work Programme for 2026/27 is the FCA's public statement of intent for the year ahead, structured around the four strategic priorities from its 2025–2030 Five-Year Strategy. It arrives alongside the FCA's Perimeter Report 2026/27, which asks for government action on 15 areas, including sports spread betting, regulatory clarity and a framework for AI-generated financial guidance and a fees consultation (CP26/11, closing 30 April 2026).
The 'smarter regulator' priority is the most operationally significant for supervised firms: the FCA is integrating AI into its own supervisory and regulatory decision-making workflows to detect harm faster and accelerate regulatory decisions. This signals an intent to move from periodic supervisory engagement to more continuous, data-driven oversight, a shift with profound implications for how firms approach regulatory reporting and compliance.
On financial crime, the FCA is developing a unified, end-to-end intelligence-led service to identify high-harm financial promotions faster; a response to the explosive growth of social media promotions and finfluencer activity. For regulated firms, this means an elevated risk of enforcement if promotional content is unclear, inconsistent with product reality, or targets vulnerable audiences.
Rules and Guidelines:
AI integration in FCA supervision: the FCA's use of AI to detect harm and speed regulatory decisions will mean firms' data submissions and public communications face more systematic monitoring, clear, accurate, and complete disclosures are more important than ever
Financial promotions: the FCA's new intelligence-led financial promotions service signals elevated enforcement risk for inaccurate, misleading, or improperly approved promotions across all channels
Pension charge cap: the FCA will consult on the charge cap during 2026/27, firms in the defined contribution pension space should monitor and prepare to respond
Consumer Duty: remains the foundation of all supervisory activity; the work programme reinforces boards' obligation to monitor outcomes proactively
Growth agenda: the FCA will continue reducing prescriptive rules and increasing flexibility, including through the SMCR reform (H1 2026 aimed at halving burden) and rule simplification across multiple sectors
Perimeter Report 2026/27: The FCA has flagged AI-generated financial guidance and speculative prediction market products as emerging issues outside its current remit; legislative action is sought from HMT
Businesses Affected:
All FCA-regulated firms: the shift to AI-powered supervision means data quality, consistency, and timeliness of regulatory submissions are under more continuous scrutiny
Financial promotions approvers and distributors: the new intelligence-led promotions service will target high-harm content across digital and social media channels
DC pension providers and workplace scheme operators: the pension charge cap consultation is a direct action item
Firms subject to SMCR: the H1 2026 reform consultation offers potential to reduce administrative burden but requires active engagement to shape the outcome
Technology firms providing AI-based financial guidance tools: the Perimeter Report signals the FCA's intent to extend regulatory coverage to these products as soon as legislative powers permit
Next Steps:
Review the Perimeter Report 2026/27 and assess whether any of the 15 areas where the FCA is requesting government action affect your business model
Audit your financial promotions approval and monitoring processes, ensure they are fit for an era of continuous AI-powered FCA scanning across digital channels
Begin preparing for the pension charge cap consultation; model potential impacts on product pricing, fund governance, and member outcomes
Engage with the SMCR reform consultation (H1 2026), the FCA aims to halve the administrative burden; this is an opportunity to shape the final framework
Consider how your own AI governance frameworks align with the FCA's expectations as it becomes a more AI-driven regulator; firms that demonstrate transparency and good data governance are best positioned
Respond to CP26/11 (fees and levies) by 30 April 2026 if you have views on the proposed fee structure for 2026/27
Financial Conduct Authority, Strategic Priorities Themes
