The reports replace its previous portfolio letters with a simplified, sector-based approach designed to improve clarity and reduce regulatory burden.
Key updates include:
➡️ Replacement of Portfolio Letters: More than 40 individual portfolio letters are consolidated into nine sector level reports, reducing duplication and complexity for firms;
➡️ Clearer Structure: Each report summarises key supervisory priorities, with direct links to detailed guidance where required;
➡️ One-Stop Overview: The publications outline both current supervisory focus areas and upcoming regulatory developments within each sector;
➡️ Annual Publication Cycle: Reports will be issued on a yearly basis to provide more predictable and consistent updates;
➡️ Board-Level Engagement: Firms’ boards and senior management are expected to review the priorities carefully and act where necessary; and
➡️ Regulatory Objective: The initiative forms part of the FCA’s strategy to act as a “smarter regulator”, aiming to streamline communication while maintaining expectations that firms remain compliant and informed.
✅ Firms should review the relevant sector report, assess their alignment with the supervisory priorities, and ensure governance structures support the implementation of any required actions.