We want a UK wholesale market which supports both the domestic economy and growth, while maintaining high standards of consumer protection.
This will be achieved if the UK continues to be regarded as one of the leading global markets of choice for issuers, intermediaries and investors alike when compared to other high-quality markets.
The UK’s position in global wholesale markets is affected by a wide variety of factors. For example, general levels of activity and attractiveness may be affected by wider economic circumstances and market dynamics outside our control.
However, we’re working to measure how the market perceives our overall regime to consistently track of market sentiment and understand where we could improve our regime further.
Confidence and fair value
Outcome 1: The regulatory framework is clear, well-understood and trusted by all market participants.
The framework supports market participants determining fair value. Where outcomes are not being met, this is clearly communicated, and remediation is swiftly undertaken or enforced
| Metric code | Metric description | Source | Baseline Value 2022 | Year 1 values | Year 2 values
| Latest status (year 2 value compared to baseline) |
|---|---|---|---|---|---|---|
GWM1-M01
| Increase in perceived effectiveness of FCA’s role and impact in regulation of the wholesale markets
| FCA Practitioner Panel survey[1] | The regulatory framework is clear and well understood by all market participants:
(2022/23) | N/A | The regulatory framework is clear and well understood by all market participants:
(2023/24) Differences between year 2 and baseline values are statistically significant for agree/strongly agree. Note that for metrics based on the FCA and Practitioner Panel survey (GWM1-M01, GWM2-M02, GWM3-M01) investment management firms were included in the sample for 2023/24, but were not included for some of the questions in 2022/23. Please see for detail on the implications of this[1] and any impacts on the results. | Improved |
| FCA Practitioner Panel survey[2] | The regulatory framework is trusted by all market participants:
(2022/23)
| N/A | The regulatory framework is trusted by all market participants:
(2023/24) Difference between year 2 and baseline value is not statistically significant for ‘weakened’ and ‘don’t know’. | Little or no change | ||
| FCA Practitioner Panel survey[3] | Over the past 12 months the UK’s position in wholesale markets has:
(2022/23)
| N/A | Over the past 12 months the UK’s position in wholesale markets has:
(2023/24) Differences between year 2 and baseline values are statistically significant for ‘weakened’ and ‘don’t know’. When we exclude investment management firms from the 2023/24 data. The difference remains significant for ‘weakened’, but the result changes to 19% to 25%. The difference between baseline and year 2 for ‘don’t know is no longer significant when investment management firms are excluded.
| Improved | ||
| FCA Practitioner Panel survey[4] | Impact of the FCA’s actions on the UK’s position in wholesale markets during this time (on a scale of 1=significant negative impact to 10=significant positive impact): Mean score: 6.3 (2022/23) | N/A | Impact of the FCA’s actions on the UK’s position in wholesale markets during this time (on a scale of 1=significant negative impact to 10=significant positive impact): Mean score: 6.4 (2023/24) Difference between year 2 and baseline value is not statistically significant. | Little or no change | ||
| FCA Practitioner Panel survey[5] | FCA regulation supports market participants determining fair value in wholesale markets
(2022/23)
| N/A | FCA regulation supports market participants determining fair value in wholesale markets
(2023/24) Difference between year 2 and baseline value is not statistically significant. | Little or No Change |
Access
Outcome 2: The UK is regarded by market participants as one of the top markets of choice, with innovation viewed as encouraged and supported, and regulation viewed as appropriately evolving to address new opportunities and risks
| Metric code | Metric description | Source | Baseline Value | Year 1 values
| Year 2 values | Latest status (year 2 value compared to baseline) |
|---|---|---|---|---|---|---|
| GWM2-M01 | Working with partners, maintain the UK’s top 5 position in the Global Financial Centres index. This measures the overall financial activity across all sectors and considers a number of qualitative factors related to overall economic performance It ranks different jurisdictions based on these factors
| Global Financial Centres Index[-8] | London is ranked second in this index (for year 2022) | N/A | London is ranked second in this index (2023/24)
| Little or No change |
| GWM2-M02 | Increase in market participants’ perception of the strengths of the regulatory regime in the wholesale markets | FCA Practitioner Panel survey [6] | The FCA is effective in regulating wholesale markets.
(2022/23) | N/A | The FCA is effective in regulating wholesale markets.
(2023/24) Difference between year 2 and baseline value is not statistically significant. | Little or no change |
| FCA Practitioner Panel survey [8] | FCA regulation ensures the integrity of wholesale markets:
(2022/23)
| N/A | FCA regulation ensures the integrity of wholesale markets:
(2023/24) Difference between year 2 and baseline value is statistically significant for ‘agree/strongly agree’ (this is no longer statistically significant when investment management firms are excluded) | Declined |
Access/Sustainability
Outcome 3: Market participants regard the regulatory framework as proportionate both in terms of speed and cost
| Metric code | Metric description | Source | Baseline Value | Year 1 values
| Year 2 values | Latest status (year 2 value compared to baseline) |
|---|---|---|---|---|---|---|
GWM3-M01
| Increase in perception of market participants on the proportionality of the regulatory regime in the wholesale markets | FCA Practitioner Panel survey[9] | FCA regulation in wholesale markets is proportional in terms of the benefits versus the costs:
(2022/23) | N/A | FCA regulation in wholesale markets is proportional in terms of the benefits versus the costs:
(2023/24) Difference between year 2 and baseline value is not statistically significant. |
Little or no change |
| GWM3-M02 | Increased proportion of cases meeting Listing Transactions & Authorisation turnaround targets | FCA operating metrics[-25] | Listing Transactions voluntary standards met: New issuer: First response within 10 days
| New issuer: First response within 10 days
| New issuer: First response within 10 days
| Little or no change |
| FCA operating metrics[11] | Existing issuer: First response within 5 days
| Existing issuer: First response within 5 days
| Existing issuer: First response within 5 days
| Little or no change | ||
| FCA operating metrics[12] | New issuer: subsequent proof response within 5 days
| New issuer: subsequent proof response within 5 days
| New issuer: subsequent proof response within 5 days
| Improved | ||
| FCA operating metrics[13] | Existing issuer: subsequent proof response within 3 days
| Existing issuer: subsequent proof response within 3 days
| Existing issuer: subsequent proof response within 3 days
| Little or no change | ||
| FCA operating metrics[14] | Other queries within 5 days
| Other queries within 5 days
| Other queries within 5 days
| Little or no Change | ||
| FCA operating metrics[15] | Approved Persons - of which SMCR-related
| Approved Persons - of which SMCR-related
| Improved | |||
| FCA operating metrics[16] | Approved Persons - of which AR-related
| Approved Persons - of which AR-related
| Improved | |||
| FCA operating metrics[17] | New Firm Authorisations
| New Firm Authorisations
| Improved | |||
| FCA operating metrics[18] | Variations of Permission
| Variations of Permission
| Little or no Change | |||
| FCA operating metrics[19] | Change in Control
| Change in Control
| Improved |
What the latest metric values tell us
Due to the long-term nature of our interventions, it will take time before we see the impact of our activities reflected in many of the metrics, and we will need multiple years data to compare against the baselines to see meaningful trends. There are also significant factors outside our control which make it very challenging to see our direct impact, we will therefore also use other markets metrics as leading indicators as we track our progress within the financial markets ecosystem.
For metrics GWM1-M01, GWM2-M02, GWM3-M01, our FCA and Practitioner Panel survey 2023/24 showed that in terms of perceptions by wholesale markets among firms we regulate in the UK, 2 metrics have significantly improved, 1 declined and 5 unchanged (note that investment management firms were included in the sample for 2023/24 ). The significant improvement is in the perception of the UK’s global position in the wholesale markets (under GWM1-M01) with the percentage of firms saying the UK’s position has weakened reducing from 33% to 19%. Although there are many market forces at play here, the data indicates that the respondents feel the FCA is broadly taking the right actions to support the UK’s wholesale market. This is also the first values against the baseline, multiple years values will be needed in order to see a more meaningful trend.
For metric GWM2-M01 which measures UK’s position globally as a financial centre relative to international competition, the Global Financial Centres Index showed that London consolidated its second place between New York and Singapore. London retained its ranking of second in many of the key underlying competitiveness metrics in the major industry sectors of Banking, Investment Management, Government & Regulatory, Finance, and Fintech. It has also regained its number one ranking above New York and Singapore in terms of having the broadest and deepest financial centre globally. In Europe, London continues to lead in the region with six Western European centres featuring in the top 20. Although London has lost some activities to various centres in Europe following Brexit, no one centre is emerging as a challenger to London. In terms of Innovation, London is ranked second after New York and above San Francisco in having the most competitive environment for Fintech activities.
For metric GWM3-M02, significant improvements have been made on authorisations turnaround times for wholesale market firms, which is an indicator that we are improving our speed and efficiency. We have also authorised 100% of both new scheme applications and proposed fund alterations applications within service standards over the last 3 years.
We have significantly improved authorisations turnaround times for wholesale market firms and the published metrics (which also include retail firms) are now showing between 95.3% to 99.7% of cases being determined within target turnaround times in Q4 23/24, a significant improvement from between 82.8% in Q4 22/23 to 99.7% in Q4 22/23, and a significant improvement from the lowest metric showing 78.9% in Q1 22/23. For further information please see our Operating Service Metrics 2023/24 Q1[-60].