FCA CEO Nikhil Rathi has told a City audience today that an announcement on a new generation of targeted support and simplified advice was "imminent."

Mr Rathi told TheCityUK’s annual conference that the changes would: "Help more people out of cash and into investing in markets for better long-term returns."

The FCA boss said the move was part of the FCA's ambition to do more to spur growth following a call from Chancellor Rachel Reeves for the regulator to promote growth in financial services.

The FCA is currently reviewing the Advice-Guidance Boundary to potentially open the door to a new generation of targeted support and simplified advice - cut down guidance which could help millions more get support for financial decisions.

While he gave away few details today, Mr Rathi said the changes would be part of a raft of moves by the FCA to promote growth in financial services and reduce red tape for regulated firms.

Mr Rathi said the UK should be proud of its financial services sector which was of global importance and he criticised those who talk it down.

He said: "If we keep telling ourselves – and the world – that London has become second-rate, that risks becoming a self-fulfilling prophecy. This is the moment to reset the psychology. Put aside British modesty and celebrate our raw strengths."

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Mr Rathi pointed out that financial services contributed £214bn of Gross Value Added to the economy.

He said: "We have world-leading banking, insurance, derivatives, debt, foreign exchange and commodity markets and infrastructure. We lead Europe in fintechs and are second only to the US in investment management."

Mr Rathi said one area the FCA was focusing on with any changes was dealing with risk and particularly acceptable risk.

He said: "Let me talk about two areas where this is particularly important – risk culture and data. The FCA has repeatedly faced criticism for being too risk averse.

"When I became CEO 5 years ago, a central theme was that we were too legally risk averse. Not curious, assertive or joined up enough. We have since made big changes: the Consumer Duty, stepping up the fight against financial crime, and taking several groundbreaking legal actions.

"In the process, we’ve brought the industry compensation levy down to a ten-year low, supporting competitiveness. Today, the risk aversion critique comes from a different perspective: that excessive regulatory compliance and perceived lack of commercial nous stifle growth and innovation. 

"The Chancellor sees the regulatory system as having regulated for risk, not growth. We are engaging seriously with this feedback and will continue to make changes at pace." 

Mr Rathi reiterated his call for an "open debate" on risk appetite - and metrics for tolerable failures, alongside ones for competitiveness and growth, and operational performance - to ensure the industry shifts to a stance that endures. One that gives firms and consumers long-term confidence to invest, while building greater coherence between government, industry, Parliament and regulators."